BRUSSELS, 1 August 2016 – WSBI welcomes the Chinese Presidency goals of fostering robust international trade and investment in the current economic context. We find the Chinese Presidency focus on long-term economic growth aligned with that of savings banks, serving local long-term prospects.
WSBI believes that SMEs are key to spurring long term growth, and that savings banks are their natural community rooted financing partner. Savings banks are able to integrate developing countries through SMEs in the global value chain. Therefore WSBI calls for the preservation of this relationship to properly finance the real economy.
In particular, WSBI disputes the premise in current debates that capital market instruments are a viable alternative to bank loans for micro, small and medium-sized enterprises (MSMEs). Both forms of finance are complementary, and the model chosen should be tailored to the specificities of the borrower, the project and the region in question. WSBI therefore calls for sensitivity on the part of regulators to ensure that the emerging regulation on capital and liquidity requirements does not jeopardise the traditional role of the savings and retail banks that make up the WSBI membership in financing MSMEs and the real economy. In this respect, regulators/legislators in all jurisdictions must be aware that a “one-size-fits-all”-approach (regulation designed for large, global players, but then implemented for the smallest local bank as well) does harm to the vital role of locally rooted banks of supplying funds to MSMEs.
>> See the WSBI Intitutional Positions for G20 decision makers (.pdf)