The Bank of England already offers a variety of models that enable payment systems to settle in central bank money. To support the ongoing industry innovation, the bank has added a new model, which can allow the bank to support a greater range of payment systems. The introduction of the omnibus account model aligns with the commitment made in RTGS Renewal Blueprint to enable RTGS to interface with a wider range of payment systems, including those using Distributed Ledger Technology. Expanding direct access to payment systems is one of the building blocks identified by the Financial Stability Board to improve cross-border payments globally.
Under the new model, an operator of a payment system can hold funds in the omnibus account to fund their participants’ balances with central bank money. They can support a range of high-value payments, which could range from a commercial bank buying government bonds to a small business paying their suppliers.
Operators of new and existing payment systems can now apply to the Bank of England to open an omnibus account. The applicants will be assessed against the bank’s eligibility requirements, which are designed to mitigate the risks to UK financial stability. The bank has worked with HM Treasury to confirm that systemically important payment systems accessing omnibus accounts could be supervised by the bank under the existing regulatory framework.
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