What Is the Committee On Payment And Settlement Systems?
The Committee on Payments and Market Infrastructures (CPMI), formerly the Committee on Payment and Settlement Systems (CPSS) is a committee made up of the central banks of G10 countries that monitors developments in payment, settlement and clearing systems in an attempt to contribute to efficient payment and settlement systems and build strong market infrastructure.
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 henceforth known as the CPMI.
History of the CPMI
The CPMI was created as the CPSS in 1990; it is supervised by the Global Economy Meeting (GEM) and its secretariat is 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.
The Committee on Payments and Market Infrastructures undertakes its work through specific studies by working groups as required, and publishes reports on its findings. The committee also extends its work outside of the G10 countries by creating relationships with the central banks in many emerging market economies. Its fundamental role remains the same, but the CPMI has slowly grown its field of interest, as the world’s financial markets have become more complex and interdependent over the years. The CPMI has become a global standard setter for various kinds of financial market infrastructures and has 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 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 25 central banks around the world monitor and analyze developments in payments, settlement and clearing across and within jurisdictions. The CPMI also provides a forum for collaboration among world central banks, especially in matters of oversight, operation, and policy.