Chris De Noose offers reaction to Baden-Baden G20 Finance Ministers and Central Bank Governors meeting communiqué.
>> Read the position paper "Stability through Diversity"
>> Read WSBI's institutional positions: German G20 presidency
Brussels, 21 March 2017
The following statement by WSBI, which includes comments by its Managing Director Chris De Noose, is in response to the communiqué released 18 March by the G20 Finance Ministers and Central Bank Governors meeting in Baden-Baden, Germany.
The G20 rightly stated that any effort to further boost an efficient and inclusive global economy should also make sure it can withstand future shocks.
They see a pressing need to call on governments to pursue policies that ensure the benefits of growth are widely shared throughout the entire economy. To help achieve this, there is also need to ensure regulatory relief – a more proportionate approach to regulation for the financial sector – that takes into account the actual risks incurred by the business models. The G20 can reach its aim around greater and inclusive growth – and with greater impact – if they took this path.
It is important for G20 Finance Ministers and Central Bank Governors to recognise the crucial role locally rooted banks play in passing the benefits and positive effects of globalisation to real people. Locally anchored banks such as the savings and retail banks, in the more than 80 countries where WSBI is present, allow SMEs to act on a global scale with local financing such as household and small business loans. They create a virtuous cycle of investment and benefits where it is needed most.
People look to locally rooted banks to help allow the real economy – which includes SMEs and local households alike – to build a better future. Community focused banks help further unleash real-economy forces, which lead to more jobs, better housing and educational prospects. These same banks also allow local authorities to build and maintain infrastructure essential to keep the local communities thriving.
A diverse set of banking business models helps ensure the financial system functions in a way that gives a voice to citizens and they can be more part of the global decision-making process. Decentralised in structure, locally anchored banks provide a well-managed spread of risks in a global economy and bring the fruits of globalised world to all people."