Featured Product

    FSB Publishes Roadmap on Cross-Border Payments, Report on Stablecoins

    October 13, 2020

    FSB published a report presenting the roadmap to enhance cross-border payments by providing a high-level plan that sets ambitious but achievable goals and milestones in the five focus areas. The focus areas of the roadmap involve committing a joint public- and private-sector vision to enhance cross-border payments; coordinating regulatory, supervisory, and oversight frameworks; improving existing payment infrastructures; enhancing data quality and straight-through processing; and exploring the potential role of new payment infrastructures, including the global stablecoin arrangements. FSB also published a report that presents high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements, following an April 2020 public consultation. The global stablecoin arrangements are expected to adapt to new regulatory requirements as necessary, to adhere to all applicable regulatory standards, and to address risks to financial stability before commencing operation.

    Within the cross-border payments roadmap, the focus area on exploring the role of new payment infrastructure will examine the scope for new multilateral platforms, global stablecoin arrangements, and central bank digital currencies to address the challenges that cross-border payments face, without compromising on minimum supervisory and regulatory standards to control risks to monetary and financial stability. The emergence of global stablecoins may challenge the comprehensiveness and effectiveness of the existing regulatory and supervisory oversight. Thus, FSB has agreed on the ten high-level recommendations that promote coordinated and effective regulation, supervision, and oversight of such arrangements to address any financial stability risks at the domestic and international levels. In addition to the final recommendations on stablecoin arrangements, FSB also published a note that summarizes the responses received to the consultation on global stablecoin arrangements and the resulting changes to the recommendations in the consultation paper.

    The recommendations on global stablecoin arrangements support responsible innovation and provide sufficient flexibility for jurisdictions to implement domestic approaches. The recommendations call for regulation, supervision, and oversight that is proportionate to the risks and that follows the “same business, same risk, same rules” principle. The performance of some functions of a global stablecoin arrangement may have important impact across borders. The recommendations also stress the value of flexible, efficient, inclusive, and multi-sectoral cross-border cooperation, coordination, and information-sharing arrangements among authorities. Public consultations on the individual building blocks will take place at the appropriate points, to ensure transparency and accountability. FSB also agreed to the following further actions as a key building block of the roadmap to enhance cross-border payments commissioned by G20:

    • Completion of international standard-setting work by December 2021
    • Establishment or, as necessary, adjustment of cooperation arrangements among authorities by December 2021 (and as needed based on market evolution)
    • At a national level, establishment or, as necessary, adjustment of regulatory, supervisory, and oversight frameworks, consistent with the FSB recommendations and international standards and guidance by July 2022 (and as needed based on market evolution)
    • Review of implementation and assessment of the need to refine or adapt international standards by July 2023

     

    Related Links

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

    Related Articles
    News

    APRA Decides to Standardize Submission Date for Quarterly Reporting

    APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.

    May 11, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Supporting Documentation for Reporting by Banks

    Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.

    May 11, 2021 WebPage Regulatory News
    News

    ECB Working Group Publishes Recommendations on EURIBOR Fallbacks

    The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).

    May 11, 2021 WebPage Regulatory News
    News

    EBA Publishes Phase 1 of Reporting Framework 3.1

    EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).

    May 10, 2021 WebPage Regulatory News
    News

    APRA to Finalize Capital Adequacy Standard Revisions by January 2022

    Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA

    May 10, 2021 WebPage Regulatory News
    News

    ESMA Issues Guidelines on Outsourcing to Cloud Service Providers

    ESMA published the final guidelines on outsourcing to cloud service providers.

    May 10, 2021 WebPage Regulatory News
    News

    EBA Publishes Data on Deposit Guarantee Schemes

    EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.

    May 10, 2021 WebPage Regulatory News
    News

    OSFI Sets Out Plan for Future Guidance on Managing Technology Risk

    OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.

    May 10, 2021 WebPage Regulatory News
    News

    MAS Updates Housing Loan Rules, Proposes Corporate Governance Guidance

    MAS updated rules for new housing loans by banks and finance companies.

    May 10, 2021 WebPage Regulatory News
    News

    HKMA Publishes Guideline on Sustainable Finance Grant Scheme

    HKMA published a statement on the 100% Personal Loan Guarantee Scheme and a guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2021-22 Budget.

    May 09, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6959