The move should help co-operatives reach more vulnerable and underserved populations
The G20 in November adopted the G20 Bali Leaders’ Declaration, wherein it reaffirmed support for the 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 G20’s 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.
