On September 1, the Bank of Canada designated Canada’s high-value payment system, Lynx, as a systemically important payment system under the Payment Clearing and Settlement Act.
Pursuant to the Bank of Canada’s Criteria and Risk-Management Standards for Prominent Payment Systems, Lynx is deemed to pose systemic risk to the Canadian financial system, considering the :
Value and volume of transactions, proxy measures for the potential to pose credit, liquidity and operational risk
Limited availability of substitutes that is more likely to result in the event of a disruption to that system should adverse events occur
Time criticality of payments and potential for disruption and adverse economic effects
Centrality, or importance in the payment system and market
Interdependencies, potentially increasing the economic effects of a disruption and extending the impact on confidence in payment systems
Lynx will be owned and operated by Payments Canada and overseen by the Bank of Canada.
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