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A Rationale-based Model for Architecture Design Reasoning

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7.1. The EFT system<br />

how each component is implemented is not disclosed.<br />

Figure 7.1 is the high-level use case of the system. The system is connected to all<br />

member banks in Guangzhou and its neighbouring cities. Local payment instructions<br />

which can be settled within the area are processed by the EFT System. Non-local payment<br />

instructions such as remittance of funds to other parts of China are <strong>for</strong>warded to the<br />

Electronic Interbank System (EIS) system, which is a satellite link to the national payment<br />

centre in Beijing. The EFT system interface to the China National Automated Payment<br />

System (CNAPS) system was part of the plan but it had not been implemented.<br />

Figure 7.1: A Use Case of the EFT System<br />

A payment instruction is either a credit instruction to pay or a debit instruction to<br />

request payment. Inter-bank payment instructions are settled by the central bank. It<br />

means that the central bank acts as an agent to ensure that participating member banks<br />

have enough funds to cover their financial positions. A key application of the EFT system is<br />

the High Value Payment System (HVPS) which is a real-time gross settlement application.<br />

It settles high value payment instructions in real-time to ensure banks could settle their<br />

financial obligations. This is crucial <strong>for</strong> the stability of any financial system by mitigating<br />

systemic risks. 1 The Settlement Account Management (SAM) is an accounting system<br />

which keeps track of the balances of member banks’ settlement accounts and monitoring<br />

settlement activities.<br />

1 Similar Real Time Gross Settlement (RTGS) systems are implemented in various countries such as<br />

Australia [133].<br />

107

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