Financial Stability Board Consults on Global Targets for Addressing the Four Challenges of Cross-Border Payments05/31/2021The Financial Stability Board has launched a consultation on proposed global targets for addressing the four challenges to cross-border payments. The G20 is prioritizing the enhancement of cross-border payments and the FSB states that public authorities have an important role to play in leveraging opportunities and addressing challenges in both existing and new arrangements supporting cross-border payments. In November 2020, the G20 endorsed the FSB's Roadmap and the related 19 Building Blocks. The Roadmap presents a high-level plan for tackling the issues and sets both short-term and longer-term goals and milestones. The Building Blocks indicate where further public and private sector work would enhance cross-border payments and address the frictions ascertained by the FSB. The consultation closes on July 16, 2021. The FSB will publish its final recommendations to the G20 in October 2021.
One of the first steps in the Roadmap is the setting of quantitative targets at the global level for addressing the challenges of cost, speed, transparency and access faced by cross-border payments. The FSB is proposing:
- that targets are set for three market segments —wholesale, retail (payments between non-financial corporates or public sector entities as payers or receivers and other P2P payments) and remittances (low-value transfers of money between individuals (P2P) typically to family members/friends abroad, which may be recurring or non-recurring);
- that certain factors are considered when setting the factors—cost, speed, transparency and access; and
- a set of targets that are high-level and focused on end-users for each of the market segments that consider the above factors.
View the FSB's consultation paper.
View details of the FSB's Roadmap and the 19 Building Blocks.
Return to main website.TOPIC: Payment Services
Financial Regulatory Developments Focus