Page 3 - BANKING, INSURANCE AND FMI QUARTERLY BULLETIN

Member Based Organisations
Global Regulatory Update Spotlights Link Between Climate and Finance
MADISON, Wis.—Sustainable finance will become an increasing area of focus for national-level regulators across the globe this year as financial institutions expand investments in clean energy loans and other environmentally-friendly products.
That’s one of the key developments World Council of Credit Unions’ (WOCCU) International Advocacy team will be watching, as outlined in its 2022 Global Regulatory Update for Credit Unions and Financial Cooperatives.
“Sustainable finance will transform the regulatory landscape for credit unions on many fronts, including investments, governance, disclosures, reporting and products. Credit unions are well positioned to demonstrate their value within social considerations given their unique model, which supports local communities,” said Panya Monford, WOCCU Assistant General Counsel of International Advocacy.
2022
Greater financial inclusion made possible through guidance from international standard setting bodies that emphasizes the importance of proportional regulatory treatment for credit unions is also a major focus for 2022.
“Proportionality continues to be a priority for World Council and is necessary for the tailoring of regulations to the size, risk and complexity of the institution. Rules should be adopted that reflect the unique nature of the credit union cooperative model. They need to reflect the systemic importance, the cross- border activity (or lack thereof) and, more generally, the risks to which they are exposed. We know that the failure of national-level regulators to use proportionality, which is inherent in most international standards, can lead to or compound financial exclusion,” said Monford.
World Council’s Global Regulatory Update is put out on an annual basis to help credit unions and financial cooperatives prepare for the compliance issues most likely to impact them in the year ahead. The new edition also covers several other leading regulatory issues affecting credit unions across the globe, including:
• Anti-Money Laundering and Combating the Financing of Terrorism (AML/ CFT).
• Payments.
• Digitalization/Cybersecurity/Cryptocurrency. Read more
WOCCU Urged a Focus on Proportionality to Allow Credit Unions to Expand Reach
The G20 reaffirmed its support for a World Council of Credit Unions’ (WOCCU) advocated position that national-level regulators put a greater focus on proportionality in the newly released G20 Rome Leaders’ Declaration, which embraces a commitment to enhancing the financial inclusion of vulnerable and underserved segments of society that credit unions should now have an even greater opportunity to serve.
“We welcome the G20’s focus on financial inclusion and a risk-based approach to regulations. This means support for proportionality, which is the key to allowing credit unions to significantly advance the G20’s goal of promoting financial inclusion by fostering responsible finance through increased access to affordable financial services offered by credit unions. Direction to the international standard setters to focus on financial inclusion and risk-based approaches are crucial to ensuring credit unions can fulfil their mission and play a key role in reducing inequalities around the world,” said Andrew Price, WOCCU Senior Vice President of International Advocacy and General Counsel.
The G20 also reiterated its support for the G20 2020 Financial Inclusion Action Plan, which includes provision that allows for an enabling and proportionate legal and regulatory framework for digital financial inclusion that takes relevant G20 and international standard setting body standards and guidance into account.
Work on these issues will now turn to the Global Partnership for Financial Inclusion, as well as the next G20 Presidency in Bali, Indonesia. WOCCU will continue to engage with policymakers to ensure the ability of credit unions to play a crucial role in the global efforts to increase financial inclusion.
G20 Reaffirms Support for WOCCU Advocated Position on Financial Inclusion
European Network of Credit Union Members Urge Proportionality in the EU
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