BIS report on progress in reducing forex settlement risk
The Committee on Payment and Settlement Systems of the Bank for International Settlements (BIS) has recently published a report on Progress in Reducing Foreign Exchange Settlement Risk, a copy of which is available at the BIS website (http://www.bis.org/publ/cpss83.htm).
You are recommended to study the report and its recommendations carefully and take appropriate actions to reduce your institution’s foreign exchange settlement risk.
While the report recognises that the financial services industry has made significant progress in dealing with foreign exchange settlement risk in the last decade, it recommends that further actions should be taken by individual institutions, industry groups and central banks to reduce and control the remaining foreign exchange settlement exposures that may still present systemic risk and to guard against the risk of reversing the progress that has already been made. Insofar as individual institutions are concerned, the following actions are recommended: — www.theasianbanker.com (May 15 2008)–