Global Regulatory Standards
A core part of Modernization is underpinning Canada’s modernized payments system with a flexible and robust policy and legal framework that reflects current market practices, achieves the appropriate balance between flexibility and compliance, and facilitates innovation.
- Introduction of collateral and same-day settlement for the retail batch systems to better manage credit risk.
- Real-time tracking of financial risk exposures and available/required liquidity for settlement
- Ensuring safety and soundness by fully observing the Bank of Canada’s risk standards in the most efficient
- Open, risk-based access to systems, facilitating competition and innovation without sacrificing safety & soundness
Automated Clearing Settlement System Interim Credit Risk Model implemented
Develop the Lynx Financial Risk Framework
2019 – 2021
Establish legal framework for Lynx
2020 – 2021
Develop the Real-Time Rail Financial Risk Framework
2020 – 2022
Establish legal framework for Real-Time Rail
The payments ecosystem in Canada (and around the world) is rapidly changing: Consumers and businesses want faster payments and access to funds, enhanced security and privacy. Businesses want richer payment data and operating environments that promote efficiencies like end-to-end straight-through processing. Also, the Department of Finance and the Bank of Canada – who both have oversight responsibilities for Payments Canada – have expressed strong support for payment system modernization for both risk reduction and promotion of the public policy objectives. Payments Canada’s payments infrastructure, rules and standards need to be updated to better enable payments providers to innovate and products and services to better meet end user needs. For more information on why Payments Canada is modernizing the Payments system, view the Companion Reader to the Vision or the Canadian Payment Ecosystem.