Central banks of Ukraine and Belgium are to exchange confidential information essential for the MasterCard Europe oversight. The National Bank of Ukraine and the National Bank of Belgium reached an agreement on signing the Memorandum on Confidential Information Exchange for MasterCard Europe Oversight.
According to Article 22 of the European System of Central Banks Statute and within collective agreement between the EU national central banks, the National Bank of Belgium holds major responsibility for the activity of MasterCard Europe within euro area as the MasterCard Europe headquarter is located in Waterloo (Belgium), and its activity is regulated by the laws of Belgium.
Common oversight is an obligation for all central banks according to the Principles for financial market infrastructures of the Committee on Payment and Settlement Systems of the Bank for International Settlements. Particularly, Section 4 of the Principles.
Responsibilities of central banks, market regulators, and other relevant authorities for financial market infrastructures provides for cooperation between central banks, regulators of markets and other respective authorities both within the country and at international level to ensure reliable and effective functioning of financial market infrastructures.
Signing of Memoranda on common oversight complies with the Laws of Ukraine. Therefore, Article 41 of the Law of Ukraine On Payment Systems and Money Transfer in Ukraine provides that to perform oversight of payment and settlements systems the National bank of Ukraine cooperates with central banks of other states.
Common oversight of international payment system refers to best practices of central banks of advanced economies. Memorandum will give an opportunity to strengthen MasterCard activity oversight that is an important payment system in Ukraine. It will promote protection of users of this payment system and reliability of its operation.