##ps board ( the board ) chaired by the bank ’ s deputy governor for markets & banking and comprising four non - executive members selected for their experience and expertise, together with a number of the executive, myself included. 9 the board provides a strategic focus with particular attention to the bank ’ s role as a systemic risk manager to the chaps system, broader financial stability remit and other public interests. the bank ’ s operation of chaps is subject to the bank ’ s full ‘ three lines of defence ’ risk management model and close engagement and oversight on relevant matters from the governors, the bank ’ s court of directors and the financial policy committee. in its capacity as payment system operator, the bank ’ s delivery of chaps is supervised by the bank ’ s financial market infrastructure directorate10 to the same standards as other systemically important payment systems. it is also essential to understand the views of industry, and we have established forums to facilitate an open dialogue with a variety of key stakeholders. this includes the chaps strategic advisory forum ( saf ) and the rtgs renewal programme ’ s external advisory body ( eab ). both forums involve attendees from a information on members of the rtgs / chaps board can be found at https : / / www. bankofengland. co. uk / payment - and - settlement https : / / www. bankofengland. co. uk / financial - stability / financial - market - infrastructure - supervision all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx range of organisations to ensure input and challenge from a diverse range of stakeholders across the payments landscape, from the major, established banks through to innovative fintechs and end - users. looking ahead to rtgs renewal this is an important time for the uk payments industry. in addition to the rtgs renewal programme, pay. uk11 is working to build a new payments architecture for retail payments. there are synergies between these programmes and while we operate independently we are working closely to ensure that we co - ordinate where there are benefits to doing so, and where this will best support the payments industry. an example of our close cooperation is planning the introduction of messaging standards based on iso 20022. the bank and pay. uk are working together on the introduction of a common credit message ( ccm ) for chaps, faster payments service ( fps ) and bacs. the bank

payment systems was formalised, with the establishment of the bankers ’ clearing house, which was owned and controlled by the major retail banks. in 1985 following a series of reviews the association of payments clearing services ( apacs ) was created as an umbrella organisation for three clearing companies, including the chaps & town clearing company. it had responsibility for the chaps system, providing high - value, same - day settlement with a minimum value of £10, 000 ( equivalent to around £29, 000 in today ’ s prices ). 5 today there is no minimum value, but chaps settles around £330 billion every working day, representing 93 % of non - cash payments in the uk. around 40 % of chaps payments originate from organisations based overseas, reflecting the uk ’ s strong links to the global economy. bringing chaps into the bank when rtgs was established in 1996, it became the settlement infrastructure for chaps, increasing financial stability by ensuring the highest value payments were settled real time in central bank money. the chaps co clearing company ltd ( chaps co ) continued to operate the chaps scheme from a member perspective until last year. bringing chaps in - house marked an important milestone in our ongoing work to make chaps and rtgs safer, more secure, more accessible, and in line with international best practice. until last year, the uk was unusual in that a private sector company ( chaps co ) was responsible for the governance and rulebook6 of the high - value payment system, while the bank provided the underlying settlement infrastructure. in 2017 the bank ’ s analysis concluded that there were structural constraints in this model. given the status of rtgs as critical national infrastructure, chaps co could not be given the full range of information on rtgs that it would need to identify and manage risks across the whole payment system. these constraints meant that, while chaps co had made important enhancements to its existing model, it was unable to fully meet regulatory expectations to act as an effective end - to - end systemic risk https : / / www. bankofengland. co. uk / monetary - policy / inflation / inflation - calculator the rulebook ( or ‘ chaps reference manual ’ ) sets out the requirements that a member needs to adhere to as a participant in chaps. the rules are designed to deliver a safe, secure, and resilient chaps payment system. all speeches are available online at www. bankofengland. co