Banxico: high-value payment systems
One of the purposes of Banco de México (Banxico) is to promote the proper functioning of payment systems and one of its functions is to regulate payment systems.
Furthermore, Article 24 of the Law of Banco de México (LBM) establishes that Banco de México may issue provisions when they have, among other purposes, the proper functioning of the payment system.
The Payment Systems Law (LSP) not only recognizes Banco de México as a participant in the payment system, but also establishes that this central bank is the authority responsible for authorizing and supervising payment systems and the participants in each of them, the transactions carried out in such systems and the internal regulations governing them.
Article 4 of the LSP establishes that Banco de México will publish in the Official Gazette of the Federation (DOF) the list of payment systems authorized to operate as such and those in which the Central Bank acts as administrator.
In addition, article 6 of the LSP establishes that Banco de México authorizes the internal rules of payment systems and that these must be subject to the provisions of the general provisions issued by Banco de México.
The Law for the Transparency and Regulation of Financial Services also assists the Central Institute in promoting the proper functioning of payment systems by empowering it to regulate the services and means of payment provided by banks to their customers and the fees that banks charge each other.
Banco de México developed and operates two high-value payment systems in Mexico, namely: the Interbank Electronic Payments System (SPEI), regulated in Circular 14/2017 and Banco de México’s Account Holder Service System (SIAC).
The former, SPEI, is the main means by which commercial banks settle transactions among themselves and among their customers, while in SIAC the current accounts that banks have at the Central Bank operate, this being the means by which Banco de México provides liquidity to banks.
With respect to payment systems, Banco de México’s main role is to operate the SIAC and SPEI; to be a user of payment systems, since through them it implements monetary policy, provides liquidity to the Mexican financial system, receives guarantees from banks and uses them for the organization’s own purposes, such as paying payroll and supplier invoices, and supervising and regulating payment systems.