The role of the National Bank of Romania in supporting the payment system and protection against the systemic risk

As the centre of the clearing and payment system, the National Bank of Romania should interfere into the banking system in order to reduce the possibility that an unexpected failure of a financial institution in fulfilling its payment obligations turns into a major financial crisis leading to the collapse of the entire payment system. Taking into account the fact that the clearing and payment system is the main channel in spreading systemic crisis due to commercial banks failure, the National Bank of Romania has an important role in maintaining a sound payment system and providing suitable protection against systemic risk.