14.06.2016, 14:59
International Financial Inclusion Quality Standards Discussed
OREANDA-NEWS. The Bank of Russia hosted the 4th meeting of the Global Standards Proportionality Working Group of the Alliance for Financial Inclusion (AFI).
International standard setting bodies (ISSBs) see financial inclusion as one of the key factors in improving households’ living standards. Meanwhile, the achievement of the necessary level of financial inclusion in many countries is still impeded by too conservative regulation, lack of special-purpose standards aimed at financial inclusion, and objective factors such as remote and thinly populated territories scarce in financial services.
At the meeting attended by representatives of regulators of 16 countries, as well as international organisations and Russian financial companies, speakers shared their experience in introducing proportionate regulation and supervision allowing the application of a flexible approach to the existing and newly developed innovative financial products and services in order to, on the one hand, make them more accessible for the population, and, on the other hand, protect the consumer and ensure financial stability. The participants discussed proposals to such international institutions as the Basel Committee on Banking Supervision (BCBS), the Financial Action Task Force (FATF), the International Association of Insurance Supervisors (IAIS) and other standard setting agencies, which would embrace the potential for positive changes in the current financial services based on the experience accumulated by the Alliance members.
The Bank of Russia also implements the principles of proportionate regulation and supervision for non-bank financial organisations by developing and introducing a wide range of standards and requirements designed to both facilitate the access to the market of innovative financial products and reduce the consumers’ risks and protect their rights. ‘We cannot promote financial inclusion without simultaneously protecting rights of both market participants and financial service consumers, and constantly improving households’ financial literacy, – said Vladimir Chistyukhin, Deputy Governor of the Bank of Russia, in his opening remarks. – The Bank of Russia embraces all the three lines; we seek to ensure balance between higher financial inclusion, lower risks and persistent financial stability.’
Speaking on the last day of the Working Group’s meeting, Ksenia Yudaeva, First Deputy Governor of the Bank of Russia, stressed that financial inclusion has a positive impact on the economic growth, however, insufficiently elaborated strategy in this field may inflict serious risks upon financial stability. For financial inclusion to really have a positive effect on financial stability, the quality of financial services should be rather high.
For these purposes, in 2015, the regulator worked out and made the first calculations of financial inclusion indicators for supply and demand. This year they are to be supplemented with indicators to assess the quality of financial services and their impact of the consumer’s wellbeing. The Bank of Russia intends to use these indicators to establish a system to monitor the developments in financial markets by controlling the balance between the accessibility of products and services and financial stability.
In addition, the meeting at the Bank of Russia discussed supplementing the review of global standards impact on financial inclusion: the participants agreed on the necessity to supplement it with additional issues on Basel regulatory standards, parallel banking and deposit insurance. Other issues in focus were global trends in AML regulation, introduction of innovative technologies to promote financial inclusion and the Working Group’s strategy for 2016-2020. The meeting presented an information portal which aggregates monetary policy and financial regulation data, and information on countries’ implementation of obligations under Maya Declaration.Dynamics of the maximum interest rate (on deposits in Russian rubles) of the top ten credit institutions attracting the largest amount of household deposits | Банк России
International standard setting bodies (ISSBs) see financial inclusion as one of the key factors in improving households’ living standards. Meanwhile, the achievement of the necessary level of financial inclusion in many countries is still impeded by too conservative regulation, lack of special-purpose standards aimed at financial inclusion, and objective factors such as remote and thinly populated territories scarce in financial services.
At the meeting attended by representatives of regulators of 16 countries, as well as international organisations and Russian financial companies, speakers shared their experience in introducing proportionate regulation and supervision allowing the application of a flexible approach to the existing and newly developed innovative financial products and services in order to, on the one hand, make them more accessible for the population, and, on the other hand, protect the consumer and ensure financial stability. The participants discussed proposals to such international institutions as the Basel Committee on Banking Supervision (BCBS), the Financial Action Task Force (FATF), the International Association of Insurance Supervisors (IAIS) and other standard setting agencies, which would embrace the potential for positive changes in the current financial services based on the experience accumulated by the Alliance members.
The Bank of Russia also implements the principles of proportionate regulation and supervision for non-bank financial organisations by developing and introducing a wide range of standards and requirements designed to both facilitate the access to the market of innovative financial products and reduce the consumers’ risks and protect their rights. ‘We cannot promote financial inclusion without simultaneously protecting rights of both market participants and financial service consumers, and constantly improving households’ financial literacy, – said Vladimir Chistyukhin, Deputy Governor of the Bank of Russia, in his opening remarks. – The Bank of Russia embraces all the three lines; we seek to ensure balance between higher financial inclusion, lower risks and persistent financial stability.’
Speaking on the last day of the Working Group’s meeting, Ksenia Yudaeva, First Deputy Governor of the Bank of Russia, stressed that financial inclusion has a positive impact on the economic growth, however, insufficiently elaborated strategy in this field may inflict serious risks upon financial stability. For financial inclusion to really have a positive effect on financial stability, the quality of financial services should be rather high.
For these purposes, in 2015, the regulator worked out and made the first calculations of financial inclusion indicators for supply and demand. This year they are to be supplemented with indicators to assess the quality of financial services and their impact of the consumer’s wellbeing. The Bank of Russia intends to use these indicators to establish a system to monitor the developments in financial markets by controlling the balance between the accessibility of products and services and financial stability.
In addition, the meeting at the Bank of Russia discussed supplementing the review of global standards impact on financial inclusion: the participants agreed on the necessity to supplement it with additional issues on Basel regulatory standards, parallel banking and deposit insurance. Other issues in focus were global trends in AML regulation, introduction of innovative technologies to promote financial inclusion and the Working Group’s strategy for 2016-2020. The meeting presented an information portal which aggregates monetary policy and financial regulation data, and information on countries’ implementation of obligations under Maya Declaration.Dynamics of the maximum interest rate (on deposits in Russian rubles) of the top ten credit institutions attracting the largest amount of household deposits | Банк России
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