Welcome » IT Booklets » Wholesale Payment Systems » Introduction
This Wholesale Payment Systems Booklet (Booklet) is one of
several that comprise the Federal Financial Institutions
Examination Council (FFIEC) Information Technology (IT) Examination
Handbook (IT Handbook). It provides guidance to examiners and
financial institution management regarding the risks and
risk-management practices when originating and transmitting
large-value payments. It replaces and rescinds Chapter 18 of the
1996 Information Systems Examination Handbook.
This booklet is organized into the following four sections
describing the various aspects of wholesale payment systems,
followed by examination procedures, a glossary, a discussion of the
legal framework for interbank payment systems, a discussion of the
Federal Reserve Board's Payments System Risk (PSR) Policy, and a
discussion of the "Interagency Paper on Sound Practices to
Strengthen the Resiliency of the U.S. Financial System." Management
action summaries are included in each of the four sections
providing a snapshot of the risks and risk management practices
described in the text.
The booklet references a number of other IT Handbook booklets,
including the "Information Security Booklet," "Business Continuity
Planning Booklet," "Outsourcing Technology Services Booklet," and
the "FedLine Booklet."FedLine® is a
registered trademark of the Federal Reserve Banks. In
addition to describing the information technology risks and
controls, the booklet also describes certain credit and liquidity
risks that may be present when conducting wholesale payment
services. A full review of a financial institution's wholesale
payment system environment may require the use of examiners with
experience in credit, liquidity, and compliance issues and
additional agency-specific examination procedures.
Examiners should use the examination procedures (detailed in
Appendix A) for reviewing risks in wholesale payment systems. These
procedures address services and products of varied complexity, and
examiners should adjust the procedures for the scope of the
examination and the size and risk profile of the institution.
Examiners may use the procedures independently or in combination
with procedures from other IT Handbook booklets and agency specific
handbooks and guidance.
For financial institutions whose primary method for originating,
transmitting, and receiving large-value payment orders is the use
of the FedLine Funds Transfer (FT) application, examiners should
use the "FedLine Booklet" to assess the wholesale payment systems
and funds transfer environment. In addition, examiners should also
review the "Legal Framework" and "PSR" discussions in Appendices D
and E, respectively, if an expanded evaluation of the funds
transfer operation is necessary.