G20 Leaders’ Declaration Supports WOCCU Advocated Position on Financial Inclusion
Move should help credit unions reach more vulnerable and underserved populations
November 29, 2022
MADISON, Wis.—The G20 in November adopted the G20 Bali Leaders’ Declaration, wherein it reaffirmed support for World Council of Credit Unions’ (WOCCU) advocated focus on financial inclusion.
WOCCU and its G20 member credit union associations conducted significant outreach in 2022, urging representatives to the G20 to encourage international standard setting bodies to work more closely with national-level regulators on proportionality, which will allow credit unions to have more of an opportunity to increase financial inclusion. That advocacy work contributed to the Basel Committee issuing its High-level Considerations on Proportionality, with guidance on tailoring the Basel III Framework.
The Leaders’ Declaration reaffirmed the G20s commitment to enhancing the financial inclusion of vulnerable and underserved segments of society by endorsing several policies, including the G20 Financial Inclusion Action plan. These policies support the adoption of enabling and proportionate legal and regulatory frameworks.
The Leaders’ Declaration also gives direction to international standard setting bodies on various policy matters. This support ultimately will assist WOCCU in convincing national-level regulators to tailor regulations for the size, risk and complexity of credit unions. This proportionality is critical to having regulatory frameworks “right-sized” for credit unions, while limiting unnecessary regulatory burdens that often prevent credit unions from reaching underserved markets.
“Credit unions can play a critical role in reducing inequalities around the world, but only if their community-based, member-owned, cooperative model is allowed to function properly. Proportionality is key to our success. We welcome the G20 recognition of this approach,” said Andrew Price, WOCCU Senior Vice President of Advocacy and General Counsel.
A copy of the Leaders’ Declaration can be viewed here.
World Council of Credit Unions is the global trade association and development platform for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
World Council has implemented 300+ technical assistance programs in 90 countries. Worldwide, 82,758 credit unions in 97 countries serve 404 million people. Learn more about World Council's impact around the world at www.woccu.org.
Organization: World Council of Credit Unions
E-mail: gneumann@woccu.org
Phone: +1 608-395-2048
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