Differences in the coverage or application of legal, regulatory, or supervisory regimes to banks and non-banks that provide cross-border payment services have been identified as adversely affecting efforts to successfully address the identified Roadmap challenges and meet the G20 targets.
This consultation report sets out proposed policy recommendations to strengthen consistency in the regulation and supervision of banks and non-banks in their provision of cross-border payment services in a way that is proportionate to the risks associated with such activities. Greater consistency supports an environment that facilitates reduced costs, increases delivery speed and improves financial access and transparency. This approach reduces the prospect of regulatory arbitrage by establishing a level playing field, to the extent possible given differences in business models and risk profiles, for both banks and non-bank PSPs.
The report provides an overview of the role of banks and non-banks in cross-border payments; discusses the relevant frictions and risks; defines the principles identified based on the analysis conducted in the report, which frame the boundaries of the report’s recommendations; and proposes specific recommendations for strengthening consistency in regulating and supervising banks and non-banks in their provision of cross-border payment services.
The FSB invites comments on this consultation report and welcomes replies to the questions set out below. Responses will be published on the FSB’s website unless respondents expressly request otherwise.
FSB
© FSB - Financial Stability Board
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