BRUSSELS, 7 March 2017 – WSBI published today its latest set of institutional positions related to G20 policy areas. The eight-page document calls on G20 policymakers to recognise and encourage the role played by savings and retail banks in the real economy and to ensure appropriate regulation for better economic growth.
On the role of savings, retail banks in local economies
WSBI members have played an essential role in providing a model that forms part of a diverse banking system that remains crucial to maintaining the stability of the financial system. Financing the real economy is a core function of WSBI members' business model. Savings and retail banks safeguard deposits and put them to work through effective and responsible lending valued at close to €9.5 trillion.
This arguament was echoed this week by WSBI U.S. member ICBA in an opinion piece that appeared yesterday in International Banker.
On better regulation
No significant increase of capital requirements should take place; 2) a level playing field, in particular between different jurisdictions needs to be preserved and promoted; 3) pressing need for impact assessment and proportionate legislation; 4) global policies and guidelines should be tailored and adapted at regional and national level.
Why the G20 is important to WSBI, its members
The paper is an opportunity for WSBI and its members to express their concerns and submit proposals on issues relevant to savings and retail banks around the world that will be discussed in the upcoming the G20 Summit in Hamburg on 17-18 July.
The G20 is the most significant forum to discuss issues relating to global economic growth and financial market regulation in the aftermath of 2008 financial crisis. Although the G20 possesses no executive powers, nor are its decisions binding, decisions agreed by the heads of state and government in the framework of the G20 have been implemented by its members significantly.
A series of action plans are impacting the environment in which the World Savings and Retail Banking Institute (WSBI) member banks operate. Therefore, WSBI has actively been in dialogue with the G20 implementing partners like the IMF, FSB, the World Bank, OECD and the United Nations and taken part in consultations related to new policy initiatives, principles, or guidelines managed by the G20 partners. In addition to WSBI's on-going contribution to global policy debate, WSBI would like to take this opportunity to highlight a number of concerns and proposals under the G20 German Presidency that merit consideration. A snapshot of WSBI's key messages is available from the annex of its newly released WSBI Instutional Positions to the G20 paper.
A more open, transparent and consistent G20: a needed approach
WSBI strongly supports the G20's open and transparent process that engages private partners to provide their consolidated interest representation and reflect their concerns in the G20 decisions. Seeking comprehensive dialogue with civil societies is needed. In this respect, WSBI would like to highlight the excellent work done by the Business 20 (B20) – of which WSBI is a member of the B20 Financing Growth Taskforce – one of the non-government groups that the G20 engages. Indeed, a more open, transparent, coordinated and inclusive approach is needed. WSBI supports the G20 German Presidency's emphasis on ensuring continuity and pursuing the G20 agenda, in particular, highlighting that adopted measures must be implemented and compliance monitored.
Need for WSBI to expand its engagement
Industry representations such as WSBI can play an important role to foster regular communication and information exchange on the evolution of international regulatory and supervisory frameworks such as new initiatives or guidelines developed by the G20 implementing partners at the global level. Interaction with G20 implementing partners is an effective way to convey concerns of locally focused banks.
There is need, however, for the G20 to directly involve industry players such as WSBI in some specific G20 working groups. Those fora include the G20 International Financial Architecture Working Group and the Global Partnership for Financial Inclusion (GPFI). Through direct engagement with groups like WSBI, G20 policymakers can take better-informed measures to redirect the mandate of financial regulatory bodies toward both stability and economic growth.
>> Position paper: WSBI G20 Institutional Positions to the G20