CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » CUNA, World Council call for proportionality language in G20 Leaders’ Declaration
Policy & Issues

CUNA, World Council call for proportionality language in G20 Leaders’ Declaration

April 25, 2021
Treasury

The international credit union movement urges the G20 to take action to increase financial inclusion through a focus on the importance of proportionality, CUNA and the World Council of Credit Unions wrote to Treasury Secretary Janet Yellen Friday in advance of the release the 2021 G20 Rome Leaders’ Declaration.

CUNA and the World Council request language be included in the declaration noting that it is imperative for national-level regulators to work in connection with the international standard setting bodies to fully adopt proportional tailoring of regulations.

“The link between proportionality and financial inclusion has been well studied and documented as it allows the expansion of a financial institutions’ ability to serve people outside the financial system,” the letter reads. “Proportionality allows national-level regulators to tailor those rules that are often designed for large, internationally active banks in such a manner that will allow a local, community based financial institution to operate. This in turn allows institutions such as credit unions to serve those underserved markets.”

CUNA and World Council fully support the G20’s commitment to financial inclusion and their mission to support credit unions globally is directly aligned with the G20’s objective to reduce inequalities and promote inclusive growth, the organizations note.

The specific language CUNA and the World Council seek to include in the declaration is:

The G20 is committed to continuing its efforts to reduce inequalities and promote inclusive growth. 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 a critical factor in enabling innovative financial inclusion. Financial inclusion provides for more stable markets by bringing more depositors and deposit accounts into the financial system.

To this end we direct the Financial Stability Board (FSB) and standard setting bodies to coordinate efforts to further develop the ecosystem such that the requisite capacity to implement proportionality in practice is enhanced.

We direct the FSB and standard setting bodies to report progress on the implementation of proportionality for financial regulation annually to the G20.

Credit Union Magazine: Spring 2022

Spring 2022

Credit Union Magazine’s Spring 2022 edition profiles four Credit Union Heroes and examines CUNA's advocacy priorities, the advocacy army, and financial well-being for all.
Digital Edition •  Subscribe

Trending

  • House passes CUNA-backed fair hiring bill

  • House committee to mark up field of membership modernization bill

  • Final flood Q&As reflect CUNA-sought clarifications

Tweets by CUNA_News

Polls

Are you ready for CECL?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2022 Credit Union National Association | ADA Compliance Notice & Legal
Email Us