Page 1  Rowing in unison to enhance cross-border payments − speech by Victoria Cleland Given at the Central Bank Payments Conference 2022  Page 2  Published on 29 June 2022  Victoria Cleland talks about the progress of a plan to make cross-border payments cheaper, faster and more transparent. This plan is set out in a roadmap created by the G20 group of countries. Victoria says for this work to succeed, central banks, industry and public authorities around the world must work together. Speech The importance of cross-border payments I am delighted to be speaking once again at the Central Bank Payments Conference. I have previously highlighted the establishment of the roadmap and targets to enhance cross-border payments. Today, I want to update you on some of the tangible progress already made in this area. And to stress the important role that you can play in working collaboratively across the public and private sectors to deliver real improvements to the cost, speed, transparency and accessibility of cross-border payments. Cross-border payments are essential to the global economy. It is estimated that this year the global cross-border payment market will settle $ trillion. [1] And it is not just the wholesale markets that are impacted: cross-border payments are crucial to businesses, consumers and remittances. In Greece alone remittances reached an all-time high of 338 EUR million in January 2022. [2] And the importance of cross-border payments is due to grow further.

The report highlights three possible end-states for an expansion of operating hours: (i) an incremental increase in operating hours on working days, (ii) an increase to include current non-operating days like weekends or holidays and (iii) extension to full 24/7 operations. [17] Expanding operating hours would have some significant benefits for cross-border payments: 1. Faster cross-border payments: Longer operating hours would extend the window of overlap between systems and lower an operational barrier to completing cross-border payments within the 1hr timeframe specified in the FSB targets. 2. Improved liquidity management: To enable cross-border payments banks need to hold liquidity positions to fund the payment. The longer cross-border payments take the longer these positions need to remain open, trapping liquidity. Greater overlap in operating hours could speed up the transaction. 3. Reduced settlement risk: When the operating hours of payment systems do not overlap final settlement in central bank money cannot happen which leads to the build-up on settlement risk. The longer settlement is delayed due to operating hours the greater the settlement risk becomes. Expanding operating hours will make cross-border payments faster and reduce settlement risk But, as the report points out, there are also risks and operational and policy implications to assess when reviewing expansion of operating hours. Parties involved in RTGS systems may need to review and enhance existing operational procedures, risk monitoring tools and mitigation measures, and central banks and other authorities, will need to consider issues related to monetary policy, financial stability, and resolution policy for troubled institutions.