The World Council of Credit Unions (Woccu) has called on the G20 to promote proportional tailoring of financial regulations, in order to advance financial inclusion worldwide.
Woccu International Advocacy made its recommendations in a letter to Brazil’s G20 Presidency. The G20 Summit takes place this November in Rio de Janeiro, under the banner of “Building a Just World and a Sustainable Planet”.
In the letter, Woccu emphasises the importance of the G20’s commitment to reducing inequality and promoting inclusive growth, and argues that proportionally applying international standards for financial regulation is “a critical factor in enabling innovative financial inclusion.”
Woccu, which represents over 83,000 credit unions across 118 countries, also urged the G20 to include language in its 2024 Leaders’ Declaration, directing bodies such as the Financial Stability Board, to coordinate efforts to enhance the implementation of proportional regulation globally, and to report annually on progress made in this area.
The G20 has previously heeded Woccu’s calls on financial inclusion, including last year, where proportionality was included in the newly adopted sustainability disclosures issued by the International Sustainability Standards Board (ISSB).
Erin O’Hern, WOCCU international advocacy and regulatory counsel, said: “Each year, the G20 Leaders’ Declaration has more influence on financial regulatory guidelines issued by international standard setting bodies than anything else.
“We want to make sure support for the proportional treatment of credit unions and other community-based financial co-operatives is embedded in that document, so Woccu member institutions can continue to play a critical role in providing financial services to more underserved communities worldwide.”
