FED Consults on Potential Actions to Facilitate RTGS for Payments
FED is inviting public comment on the actions it could take to support faster payments in the United States. Comments are due by December 14, 2018. The potential actions, which would facilitate real-time interbank settlement of faster payments, build on collaborative work with the payment industry through the Federal Reserve System's Strategies for Improving the U.S. Payment System (SIPS) initiative. FED had established the SIPS initiative in 2013 with the objective of engaging with the payment industry and other stakeholders to upgrade and enhance the payment system in the nation.
While FED is not committing to specific actions, it is seeking input on whether the following the potential actions, separately or in combination—or any alternative approaches—would help achieve ubiquitous, nationwide access to safe and efficient faster payments:
- Development of a service for real-time gross settlement (RTGS) of faster payments that would be available 24 hours a day, seven days a week, and 365 days a year (24x7x365)
- Creation of a liquidity management tool that would enable transfers between Federal Reserve accounts on a 24x7x365 basis to support services for real-time interbank settlement of faster payments, whether those services are provided by the private sector or the Federal Reserve Banks
Real-time settlement avoids interbank credit risk by aligning the speed of interbank settlement with the speed of underlying payments. Thus, broad use of real-time settlement for faster payments could enhance the overall safety of the faster payments market in the United States. Development of a nationwide real-time interbank settlement infrastructure by FED could encourage more banks to develop faster payment services, thus creating more choice for consumers, households, and businesses. Additionally, a liquidity management tool could improve the level of participation by banks in a real-time settlement infrastructure for faster payments and thus lead to public access to faster payment services, by mitigating risk that can arise for banks, outside of the standard business hours.
Related Links
Comment Due Date: December 14, 2018
Keywords: Americas, US, Banking, PMI, RTGS, Interbank Settlement, SIPS Initiative
Previous Article
EBA Publishes Results of the 2018 EU-Wide Stress Test for BanksRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.