Featured Product

    CPMI Report Sets Out Building Blocks to Enhance Cross-Border Payments

    July 13, 2020

    CPMI published a report that sets out nineteen building blocks for a global roadmap to improve cross-border payments. The report highlights five focus areas that involve committing to a joint public- and private-sector vision; coordinating regulation, supervision, and oversight; improving existing payment infrastructures; enhancing data quality; and exploring the potential of new payment infrastructures. This report marks Stage 2 of a three-stage process initiated by the G20. In April 2020, FSB had published the Stage 1 report, which assessed existing cross-border payment arrangements and challenges. This Stage 2, CPMI report supports a global approach to addressing the underlying frictions identified in the Stage 1 report. As part of the Stage 3, FSB will publish the roadmap to enhance cross-border payments in October 2020.

    The building blocks identified in the CPMI report are arranged into five focus areas, four of which seek to enhance the existing payments ecosystem, while one focus area covers emerging payment infrastructures and arrangements. Work on some of the building blocks in terms of focus areas is already underway in a number of jurisdictions, while with others it will take more time to assess implementation:  

    • Commit to a joint public and private sector vision to enhance cross-border payments. The building blocks in this focus area are intended to act as a commitment mechanism to drive a meaningful, coordinated change at the global level over a sustained period of time. A common vision and agreed targets can encourage a wide range of policymakers and market participants to work toward enhancing cross-border payments. Implementing international guidance and principles relevant for cross-border payments and defining common features of cross-border payment service levels will require sustained public- and private-sector commitment.
    • Coordinate on regulatory, supervisory, and oversight frameworks. The building blocks in this focus area are intended to mitigate key challenges arising from the multi-jurisdictional nature of cross-border payments, by advancing consistent international rules and standards without compromising individual jurisdictional discretion or lowering standards.
    • Improve existing payment infrastructures and arrangements to support the requirements of the cross-border payments market. The building blocks in this focus area center on technical and operational improvements to the existing domestic and international payment infrastructures that cross-border payments depend on.
    • Increase data quality and straight through processing by enhancing data and market practices. The building blocks in this focus area aim to maximize the positive impact of the technical, operational, and regulatory process changes being advanced in the above-mentioned focus areas. Promoting the adoption of common message formats, including conversion and mapping from legacy formats and the use of Legal Entity Identifiers, directly mitigates the friction around fragmented and truncated data.
    • Explore the potential role of new payment infrastructures and arrangements. The building blocks in this focus area are aimed at exploring the potential that new multilateral cross-border payment platforms and arrangements, central bank digital currencies, and global “stablecoins” could offer for enhancing cross-border payments.

    The report also details a set of considerations that could support the work being done in Stage 3 on using building blocks to create a global roadmap to enhance cross-border payments. Extensive engagement with all relevant private- and public-sector stakeholders will be needed to make progress in enhancing cross-border payments. Important interdependencies between building blocks have been identified and these interdependencies will be assessed further to inform the Stage 3 roadmap and beyond. Early incremental benefits seem feasible from some building blocks, while the benefits from other building blocks are expected to be realized in the longer term. A comprehensive set of delivery milestones involving the public sector and the private sector, together with monitoring, is essential to ensure success. This report has been developed by the Cross-border Payments Task Force of CPMI and was delivered to the G20 Finance Ministers and Central Bank Governors ahead of their virtual meeting on July 18.


    Related Links

    Keywords: International, Banking, Securities, PMI, Cross-Border Payments, G20, Roadmap, Stablecoins, Digital Currencies, CBDC, Fintech, CPMI

    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582