The Financial Stability Board (FSB) has published a framework by which progress towards the G20 cross-border payments targets can be monitored.
The 11 targets, outlined in the FSB’s ‘Targets for addressing the four challenges of cross-border payments’ report, aim for cheaper, faster, and more transparent and accessible payments across the wholesale, retail and remittance market segments.
The framework uses key performance indicators (KPIs) and data sources that rely on aggregated data, allowing for the monitoring of wider market segments rather than individual firms. Existing data collection and channels are used when possible to ease the process.
KPIs will be defined at a global level, however granular breakdowns will be provided to more closely investigate where issues remain. The first baseline estimates of these are not expected to be published for several months.
The FSB states that it will continue to evaluate data gaps in the cross-border payments ecosystem, ensuring that new data collection methods are consistent with its requirements.
In July 2022, the FSB released a report evaluating progress on Legal Entity Identifier (LEI) adoption and options to encourage future LEI take up in cross-border payments.
The study laid down a series of recommendations for promoting the use of LEIs in cross-border payments and outlined the potential advantages of using LEIs in improving straight-through processing rates and know your customer evaluation.
It was published in collaboration with the Global Legal Entity Foundation, the Legal Entity Identifier Regulatory Oversight Committee and a number of national authorities.
