What Was the Committee on Payment and Settlement Systems?

The Committee on Payment and Settlement Systems (CPSS) was a committee made up of the central banks of G10 countries that monitored developments in payment, settlement, and clearing systems in an attempt to contribute to efficient payment and settlement systems and to build a strong market infrastructure. CPSS was renamed and reconfigured in 2014 and became the Committee on Payments and Market Infrastructures (CPMI).

Key Takeaways

  • The Committee on Payment and Settlement Systems (CPSS) was a committee consisting of the central banks of G10 countries.
  • CPSS monitored developments in payment, settlement, and clearing systems with the goal of contributing to efficient payment and settlement systems.
  • In 2014, CPSS was renamed and reconfigured to become the Committee on Payments and Market Infrastructures (CPMI).

Understanding the Committee on Payment and Settlement Systems (CPSS)

In June 2014, at the Governors of the Global Economy Meeting (GEM), members chose to change the name of the Committee on Payment and Settlement Systems (CPSS), as well as updating its mandate and charter, in order to more closely align the name, mandate, and charter with the actual activities of the CPSS. It is now known as the CPMI.

History of the Committee on Payment and Settlement Systems (CPSS)

CPSS was created in 1990; it was supervised by the Global Economy Meeting (GEM) and its secretariat was hosted by the Bank for International Settlements. Its history stretches back to the late 1970s, when, following the Bankhaus Herstatt failure in 1974, central banks around the world started to cooperate more closely in fields including payment and settlement systems.

CPSS undertook its work through specific studies by working groups as was required, and published reports on its findings. The committee also extended its work outside of the G10 countries by creating relationships with the central banks in many emerging market economies.

Over time, the CPSS had slowly grown its field of interest, as the world’s financial markets became more complex and interdependent over the years. The CPSS became a global standard setter for various kinds of financial market infrastructures and expanded its analytical and policy work regarding issues of payment, clearing, and settlement in world financial markets, hence the need to revise its charter and mandate and change its name in 2014.

Functions of the Committee on Payments and Market Infrastructures (CPMI)

The CPMI primarily concerns itself with setting global standards for the safe and efficient operation of payment, clearing, settlement, and related systems; in this way, it supports widespread financial stability throughout the global economy. Through the CPMI, senior officials from 28 central banks around the world monitor and analyze developments in payments, settlement, and clearing across different jurisdictions. The CPMI also provides a forum for collaboration among world central banks, especially in matters of oversight, operation, and policy.