Leaders of The G20 agreed Sept. 9 to a joint declaration that embraces a proportional approach to the newly finalized standards on sustainability and climate-related disclosures published by the International Sustainability Standards Board (ISSB), while addressing a number of other issues that will impact credit union regulations moving forward.
Issued at this year’s summit in New Delhi, India, with a theme of ”We are One Earth, One Family, and we share One Future”, the Leaders’ Declaration also gives direction on financial inclusion, payments, cryptocurrency, artificial intelligence, anti-money laundering, digitization and gender equality to many of the international standard setting bodies whose guidance is ultimately used by national-level supervisors and authorities to establish regulatory rulebooks for credit unions.
“The embrace of proportionality at the level of the G20, as it relates to the sustainable and climate-related disclosures, will allow credit unions to have rules tailored for their size, risk and unique cooperative structure. This does not mean an exemption, but instead allows the important role of credit unions in transforming their communities to be highlighted and not overrun by complicated rules designed for large, internationally active banks”, said Andrew Price, World Council of Credit Unions' (WOCCU) senior vice president of international advocacy and general counsel.
WOCCU continually advocates at all levels to illustrate the link between the proportionality of regulations and the greater opportunity for financial inclusion, notably that proportionality expands the ability of community-based cooperatives like credit unions to serve people outside the financial system. This year’s efforts included direct meetings with several of the international standard setters, as well as participation in the public policy making and rulemaking process.
The Leaders’ Declaration this year also embraced critical policy positions on financial inclusion—namely the endorsement of the G20 2023 Financial Inclusion Action Plan. It further embraces digitization and supporting a digital public infrastructure to accomplish greater financial inclusion.