The Federal Reserve System competes with the private sector in providing  wholesale payment services. Core Principles Outlines Central Banks’ Objectives and Responsibilities for Systemically Important Payment Systems

Central banks in the G-10 countries and Australia have endorsed the Core  Principles, which sets forth 10 basic principles that should guide the  design and operation of systemically important payment systems in all  countries as well as four responsibilities of the central bank in applying the  Core Principles. In some cases, the banks are to serve a  particular regulatory function. Central Banks Are Involved in the Operations and Oversight of Wholesale Payment Systems

All of the central banks we studied provide settlement for wholesale  payment systems. Some  central banks have full ownership and operational involvement in the  payment system; others have little operational involvement beyond  settlement services. Other central banks participate in partnerships. Central banks provide settlement for retail payments, but commercial  banks also settle retail payments. Objectives, Scope, and Methodology

The objectives of this report are to (1) identify internationally recognized  objectives for payment systems and central bank involvement in those  systems, (2) describe the roles of central banks in the wholesale payment  systems of other major industrialized countries and the key factors that  influence those roles, and (3) describe the roles of central banks in the  retail payment systems of other major industrialized countries and the key  factors that influence those roles.
What GAO Found

The central banks of major industrialized countries have agreed on common policy objectives and presented them in the Core Principles for Systematically Important Payment Systems. Intended to help promote safer and more efficient payment systems worldwide, the Core Principles outline specific policy recommendations for systematically important payment systems and describe the responsibilities of the central banks. All of the central banks GAO studied seek to ensure that their wholesale payment systems operate smoothly and minimize systemic risk. All of the central banks provide settlement services for their countries' wholesale payment systems. Some central banks also provide wholesale clearing services. Other central banks own the system but have little operational involvement in clearing, while others participate in partnerships with the private sector. All of the central banks GAO studied provide settlement for some retail payment systems. Some, but not all, central banks exercise regulatory authority over retail payment systems in their countries. Central banks also tend to have less operational involvement in countries where there is a relatively concentrated banking industry. In some cases, laws governing payments and the structure of the financial services industry direct the involvement of central banks in retail payment systems.