Thursday, 30 March 2023

BIS CPMI reports highlight expanded payment system operating hours for cross-border payments

5 min read

Extending operating hours and expanding access to real-time gross settlement (RTGS) systems across jurisdictions could help address long-standing challenges in the cross-border payments market, including low speed, high funding costs, weak competition and long transaction chains, according to reports published by the Bank for International Settlements' Committee on Payments and Market Infrastructures (CPMI).

Extending and aligning payment system operating hours for cross-border payments incorporates feedback from a public consultation [LINK], highlighting the benefits and challenges of increased operating hours, and how they could help meet the G20 cross-border payments targets.

The report proposes three potential scenarios for extending RTGS system operating hours (“end states”): a gradual increase in operating hours on current operating days; the inclusion of current non-operating days; and full 24-hour, seven-day-a-week (24/7) operations. It also introduces the concept of a "global settlement window" – the period when the largest number of RTGS systems simultaneously operate, while looking at potential risks.

To benefit from extended operating hours, however, banks and other PSPs must have access to their respective RTGS systems. This is the focus of the second report, Improving access to payment systems for cross-border payments: best practices for self-assessments, which aims to support authorities and payment system operators in the review of access policies.

Re-disseminated by The Asian Banker

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