The Financial Stability Board (FSB) has published its roadmap for boosting cross-border payments, which have traditionally been slow, expensive and unreliable.
The FSB has put together the roadmap in response to Saudi Arabia making the improvement of cross-border payments a priority of its G20 presidency.
In its report, the FSB says cross-border payments have several challenges, including high costs, low speed, limited access and insufficient transparency.
In particular, individuals and small companies face challenges with retail cross-border payments, and "financial inclusion remains a challenge for many, especially in emerging market and developing economies," says the report.
Building on an earlier report from BIS's Committee on Payments and Market Infrastructures, the roadmap sets out actions and indicative timelines in five focus areas:
- Committing to a joint public and private sector vision to enhance cross-border payments
- Coordinating on regulatory, supervisory and oversight frameworks
- Improving existing payment infrastructures and arrangements to support the requirements of the cross-border payments market
- Increasing data quality and straight-through processing by enhancing data and market practices
- Exploring the potential role of new payment infrastructures and arrangements
Jon Cunliffe, Deputy Governor of the Bank of England, co-chair of the FSB Cross-border Payments Coordination Group, says: "The roadmap will transform cross-border payments to make them faster, cheaper, more transparent and inclusive."
Read the report:
Download the document now 856.9 kb (PDF File)