G20 Development Working Group Submissions slide image

G20 Development Working Group Submissions

participating G20 and non-G20 countries. In-Depth Assessment: Encouraging sstandard- setting bodies to further incorporate financial inclusion objectives into their work G20 leaders agreed to harness the influence of the G20 to help ensure that the global regulatory environment supports national policymakers in countries of all income levels to promote innovative financial inclusion. Work on this Action has been undertaken by the GPFI Subgroup on Principles and SSBs, which is co-chaired by Indonesia, the Republic of Korea and the United Kingdom. The focus has been on the Basel Committee on Banking Supervision (BCBS), the Committee on Payment and Settlement Systems (CPSS), the Financial Action Task Force (FATF), the International Association of Deposit Insurers (IADI), and the International Association of Insurance Supervisors (IAIS). The key implementing partners have been the AFI, CGAP and World Bank. Her Majesty Queen Máxima of the Netherlands also played a vital role in her capacity of the GPFI Honorary Patron, including by co-hosting the first high-level SSB meetings on financial inclusion, which helped to lay the groundwork for the outcomes delivered. Alignment with Core G20 and DWG Mandate The adoption of approaches to regulation and supervision that are proportionate to risks helps enable financial intermediaries to increase their outreach to unbanked and under-banked population, thereby contributing to inclusive growth, as committed to by the G20. COMMITMENT 33: Adopt the G20 Financial Inclusion Action Plan, including by encouraging the standard-setting bodies to further incorporate financial inclusion objectives into their work 1456 Implementation The GPFI has delivered the following results, among others: . a 2011 white paper entitled Global Standard- Setting Bodies and Financial Inclusion for the Poor -Toward Proportionate Standards and Guidance; a high level conference with the SSBs entitled Promoting Financial Inclusion through Proportionate Standards and Guidance in October 2012. The conference brought together representatives from the five global SSBs, along with G20 and non-G20 countries. It provided an opportunity for the SSBs to report on their progress and challenges of incorporating financial inclusion objectives into their work, and made it possible for developing countries to highlight the challenges they face in implementing global standards for pursuing a financial inclusion agenda. By their engagement with the international SSBs, the GPFI and its implementing partners have supported or helped to catalyze the following outcomes: the BCBS reinforced the concept of proportionality by issuing revised Basel Core Principles for Effective Banking Supervision in 2012. Subsequently, its Basel Consultative Group launched a work stream on financial inclusion the CPSS released a report on "Innovations in retail payments" in 2012, which noted that financial inclusion is "an important driving force for innovations in many countries"; FATF published a revised guidance on financial inclusion in 2013, which builds on the comprehensive risk-based approach embedded in its revised 2012 Recommendations, and financial exclusion is now formally recognized by FATF as a money laundering and terrorist financing risk; the IADI has prepared a paper on Financial Inclusion and Deposit Insurance; and the IAIS adopted revised Insurance Core Principles in 2011, which incorporate the proportionality principle. 43
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