Learning About the Committee on Payment and Settlement Systems
The Committee on Payment and Settlement Systems consists of the central banks of the G10 countries. The G10 countries consist of eleven industrial countries that include United States of America, United Kingdom, Switzerland, Sweden, Netherlands, Japan, Italy, Germany, France, Canada, and Belgium.
The committee looks at the developments that take place in the payments and clearing systems so as to have a well defined market infrastructure.
The committee was founded in 1990; the Bank for International Settlements hosts its secretariat. Since its inception, the CPSS has set some standards and works towards promoting research and global cooperation, especially where settlement issues and payment in involved.
The Committee on Payment and Settlement Systems also collaborates with other groups like International Organization of Securities Commissions (IOSCO), Financial Stability Board (FSB), and the Basel Committee on Banking Supervision (BCBS) in order to work towards the betterment of global payment systems. The International Organization of Securities Commissions (IOSCO) and the Committee on Payment and Settlement Systems published their report in 2012, on the OTC derivatives that were to be collected and stored by trade repositories.
Importance of CPSS
The Committee on Payment and Settlement Systems works for security and payment settlement systems and is way for the central banks to look after related developments.
Organization and Membership
The chair of the committee is the President of the Federal Reserve Bank of New York, William C. Dudley, whereas the secretariat is Daniel Heller. The committee meets thrice a year and everything is reported to the Governors of the Global Economy Meeting.
The officials of the following member countries oversee the payment and settlement banks:
- European Central Bank
- Hong Kong
- Saudi Arabia
- South Africa
The working groups have set activities that lead to recommendations for Securities Settlement Systems and the associated parties.