Danmarks Nationalbank oversees the core payment and settlement systems in Denmark and the most important payment instruments. In addition, Danmarks Nationalbank contributes to other central banks' oversight of international systems of relevance in Denmark.
Planning of oversight activities
Oversight by Danmarks Nationalbank is based on international standards for safety and efficiency. This means that operational reliability must be high and risks limited and that systems and instruments must be up-to-date and cost-effective. Danmarks Nationalbank's oversight of Danish payment and settlement systems is based on the CPMI-IOSCO principles for financial market infrastructures (FMIs). These principles are supplemented by various more detailed guidelines in specific areas, e.g. cyber security. Oversight of core payment instruments takes place in accordance with the European Central Bank's (ECB) harmonised standards for oversight of payment instruments. Danmarks Nationalbank assesses whether the systems and instruments subject to oversight comply with the requirements of international standards. Moreover, developments in systems and instruments are monitored on an ongoing basis by collecting information and through dialogue with those responsible. Danmarks Nationalbank instigates changes to the systems and instruments if required.
Danmarks Nationalbank's oversight relates to the structures and functionalities of the systems and instruments subject to oversight, and how they function in the overall infrastructure. Danmarks Nationalbank does not supervise individual firms in the infrastructure.
Cooperation with the Danish Financial Supervisory Authority
Danmarks Nationalbank cooperates with the Danish Financial Supervisory Authority regarding areas where their powers overlap. This cooperation is especially close in the field of operational risk, including cyber risk. Among other things, the Danish Financial Supervisory Authority performs IT supervision and ensures that that statutory requirements in this area are met, for instance in relation to IT security management. Danmarks Nationalbank's assessment of a system's or payment instrument's compliance with the requirements of international standards for IT security and operational risk management is based, as far as possible, on the Danish Financial Supervisory Authority's observations and conclusions.
Danmarks Nationalbank describes the activities in relation to current oversight in the annual report, Oversight of the financial infrastructure.