World Council Urges More Action by G20 on Financial Inclusion2023-03-13
The World Council of Credit Unions today urged the G20 to take further action to increase financial inclusion through credit unions worldwide. Specifically, World Council is requesting that the G20 provide direction to international standard setting bodies to work with national level authorities and supervisors on proportional tailoring of regulations that will allow the unique not-for-profit cooperative model of credit unions to increase access to responsible and affordable financial services to rural and underserved communities.
“While the G20 has embraced financial inclusion as the way to reduce inequality and support inclusive and sustainable growth, they need to take the next step to ensure that local, community based financial institutions such as credit unions that are best suited to achieve their goals do not have unnecessary barriers in their way. Implementation of proportionality at the national level is key to this success,” said Andrew Price, World Council Senior VP of Advocacy and General Counsel.
These comments were elaborated on in a letter to the finance minister of India who is the Presidency of the G20 New Delhi Summit 2023. This year it will culminate in the issuance of a Leaders’ Declaration sometime in September in 2023. World Council is urging the G20 to adopt language furthering the ability of credit unions to address financial inclusion.
In particular, the letter notes financial inclusion reduces inequality, which in turn supports inclusive and sustainable growth by allowing the vulnerable to remain healthy, stay out of poverty, pay for education and accumulate human capital. The proportionate application of International Standards for financial regulation is the key and a critical factor in enabling innovative financial inclusion through credit unions and achieving this goal. The request would insure that international standard setting bodies work with national-level authorities to ensure the proper implementation of proportionality.
A copy of the letter can be viewed here.