Committee on Payment and Settlement Systems - Explained
What is the Committee on Payment and Settlement Systems?
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Table of ContentsWhat is the Committee On Payment And Settlement Systems?How Does the Committee On Payment And Settlement Systems Work?History of the CPMIFunctions of the CPMI
What is the Committee On Payment And Settlement Systems?
The Committee on Payments and Market Infrastructures (CPMI) is a committee saddled with the responsibility of monitoring developments in payment, settlement and clearing systems. CPMI comprises of G10 countries and the central banks. Through the CPMI forum, the Central banks are enable to monitor and analyze these developments in order to enhance the efficiency of settlement systems, payment and clearing services.
How Does the Committee On Payment And Settlement Systems Work?
The Committee on Payments and Market Infrastructures (CPMI) was formerly called the Committee on Payment and Settlement Systems (CPSS). CPSS was changed to CPMI at the Governors of the Global Economy Meeting (GEM), in June 2014.
History of the CPMI
The Committee on Payment and Settlement Systems (CPSS) was established in 1990. Before CPSS was created at the Global Economy Meeting in 1990, the need to create a committee to monitor and analyze the developments in payment, clearing and settlement systems has been lingering since the 1970s. The Committee on Payments and Market Infrastructures (CPMI) has replaced CPSS as contained in the mandate and charter of this committee. This committee comprises of the central banks and G10 countries who set frameworks and policies around payment, clearing and settlement systems. The impact of CPMI is felt in the financial markets as it develops standards guiding payment and settlement systems.
Functions of the CPMI
The functions of CPMI are highlighted below;
- To monitor and analyze the developments of payment, clearing and settlement systems.
- To establish global standards that will enhance the efficiency of payment and settlement systems globally.
- To facilitate the financial stability of economies around the world.
- To create a platform where central banks across countries can collaborate and develop good policies around payments, Settlements and clearing systems.