Washington, D.C., September 9, 2023 – In a historic move at the G20 summit held in New Delhi, India, world leaders came together under the theme “We are One Earth, One Family, and we share One Future” to issue a joint declaration that carries significant implications for credit union regulations and global financial initiatives.
The key highlight of this declaration is the unanimous agreement on adopting a proportional approach to the newly established sustainability and climate-related disclosure standards set forth by the International Sustainability Standards Board (ISSB). This approach acknowledges the unique structure and size of credit unions, ensuring that regulations align with their risk profiles and cooperative nature. Andrew Price, Senior Vice President of International Advocacy and General Counsel at the World Council of Credit Unions (WOCCU), emphasized, “This proportionality does not grant exemptions but rather recognizes the pivotal role credit unions play in their communities, allowing them to thrive without being burdened by regulations designed for multinational banks.”
WOCCU has been at the forefront of advocating for proportionate regulations, emphasizing their direct link to greater financial inclusion. They have engaged in direct dialogues with international standard-setting bodies and actively contributed to the policymaking and rulemaking processes. This commitment to proportionality opens doors for community-based cooperatives, such as credit unions, to extend their services to those currently outside the financial system.
Furthermore, the Leaders’ Declaration showcases a collective commitment to critical policy positions, with an endorsement of the G20 2023 Financial Inclusion Action Plan taking center stage. This move underscores the importance of financial inclusion as a global priority. The declaration also embraces digitization and supports the development of a robust digital public infrastructure, a key driver in achieving broader financial inclusion.
In addition to sustainability and financial inclusion, the G20 leaders provided direction on several other critical issues. These include payments, cryptocurrency, artificial intelligence, anti-money laundering efforts, and gender equality. The guidance offered by the G20 is instrumental in shaping the regulatory landscape for credit unions and other financial institutions worldwide.
The 2023 G20 Leaders’ Declaration represents a significant milestone in the ongoing evolution of global financial regulations. By recognizing the importance of proportionality and financial inclusion, world leaders are working together to ensure a more equitable and sustainable financial future for all.
