LogicaCMG announced the successful implementation of its Real-Time Gross Settlement System for the Banco Central de Chile, Chile’s Central Bank. The system provides Chile with a modern payment infrastructure, which confers stability to and confidence in the national banking system by eliminating systemic risk and increasing operational efficiency, crucial for attracting inward investment.
The RTGS infrastructure also enables Chile’s commercial banks to offer a wider range of banking services to their customers, which, in turn, provide them with the ability to optimise their funds and thus contribute to economic growth.
International best practice suggests that an RTGS system should be at the heart of a modern payments infrastructure. It eliminates settlement risk by settling individual payments in real-time across settlement accounts at the Central Bank. Settlement is immediate, final and irrevocable. Payments are settled on a transaction-by-transaction basis as soon as funds are available in the settlement account eliminating any credit risk due to a time lag. Payments for which there are temporarily insufficient funds are queued at the Central Bank until funds are available.
BCC’s general manager, Sr Camilo Carrasco Alfonso, said: “With this RTGS project we have implemented a national payments infrastructure for Chile that is compliant with the most sophisticated international standards.”
Mike Hawkins, executive vice president of financial services at LogicaCMG in the Americas said: “The increased efficiency and reduced risk of this RTGS system will bring significant benefits to business and individuals throughout Chile, as well as enabling Chile to be more competitive in the global market, helping it to attract increased international investment. LogicaCMG has the world’s largest installed based of RTGS systems at central banks and this success in Chile strengthens its position as the leader in national payments infrastructure.”
The Chilean RTGS system officially went live on 2 April 2004 and successfully processed payments worth over US$1 billion on its first day of operation. LogicaCMG’s RTGS systems around the world process more than 50 million payments annually with a combined value of over US$20 trillion.
LogicaCMG is a major international force in IT services and wireless telecoms. It provides management and IT consultancy, systems integration and outsourcing services to clients across diverse markets including public sector, telecoms, financial services, energy and utilities, industry, distribution and transport. Formed in December 2002, through the merger of Logica and CMG, the company employs around 20,000 staff in offices across 34 countries and has nearly 40 years of experience in IT services. Headquartered in Europe, LogicaCMG is listed on both the London and Amsterdam stock exchanges (LSE: LOG; Euronext: LOG). More information is available from www.logicacmg.com
About Banco Central de Chile
The Central Bank of Chile was founded on 21 August, 1925. On 10 October, 1989, when its Basic Constitutional Act, Law 18,840 came into effect, the Bank became a permanent autonomous entity of technical nature, invested with full legal capacity and its own assets. It has to provide for the stability of the currency system and the due payment of both internal and foreign debts. For these purposes the Bank has the authority of regulating the amount of currency and credit in circulation, the performance of credit transactions and foreign exchange, and the issuance of regulatory provisions regarding monetary, credit, financing and foreign exchange matters. The Bank has the ability to establish its own resolutions and make its own technical decisions while exercising its attributes. The Bank must promptly compile and publish the main macroeconomic statistics, including those of monetary and foreign exchange character, balance of payments and national accounts, and other overall economic and social accounting systems.