Committee on Payments and Market Infrastructures and Future value: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Updated entry: Added three internal links and one category)
 
imported>Doug Williamson
m (Spacing.)
 
Line 1: Line 1:
The Committee on Payments and Market Infrastructures is hosted by the [[Bank for International Settlements]] (BIS) in Basle.
(FV).  


The Committee promotes the safety and efficiency of payment, clearing, settlement and related arrangements, thereby supporting financial stability and the wider economy. It monitors and analyses developments in these arrangements and provides a forum for central bank cooperation in related oversight, policy and operational matters, including the provision of central bank services. It is also a global standard setter in this area.  
If we invest money today (and roll up all the expected income) the future value receivable is the expected total value of our investment at its maturity.


If we ''borrow'' money today (and roll up all the interest payable) the future value payable is the total principal and interest repayable to the lender at the final maturity of the borrowing.


The Committee was formerly called the Committee on Payment and Settlement Systems. In June 2014, the central bank Governors of the [[Global Economy Meeting]] (GEM) endorsed a new mandate and charter for the CPSS. The GEM also renamed the CPSS as the Committee on Payments and Market Infrastructures (CPMI).


These changes came into effect on 1 September 2014.
For example if $100m is held today, and the rate of return on capital (r) is 10% per year, the Future value is:


FV = $100m x 1.1<sup>1</sup> = $110m


==See also==
* [[Payment system]]
* [[Clearing system]]
* [[Settlement system]]


[[Category:Compliance_and_audit]]
And more generally:
[[Category:Cash_management]]
 
FV = Present value x Compounding Factor (CF)
 
 
Where:
 
CF = (1+r)<sup>n</sup>
 
r = return on capital or cost of capital per period; and
 
n = number of periods
 
 
== See also ==
* [[Compounding factor]]
* [[Present value]]
* [[Terminal value]]
* [[Time value of money]]

Revision as of 13:51, 6 August 2014

(FV).

If we invest money today (and roll up all the expected income) the future value receivable is the expected total value of our investment at its maturity.

If we borrow money today (and roll up all the interest payable) the future value payable is the total principal and interest repayable to the lender at the final maturity of the borrowing.


For example if $100m is held today, and the rate of return on capital (r) is 10% per year, the Future value is:

FV = $100m x 1.11 = $110m


And more generally:

FV = Present value x Compounding Factor (CF)


Where:

CF = (1+r)n

r = return on capital or cost of capital per period; and

n = number of periods


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Committee_on_Payments_and_Market_Infrastructures&oldid=22560’