At their Summit in Los Cabos, Mexico, on June 18, Leaders of the G20 countries welcomed the progress by the Global Partnership for Financial Inclusion (GPFI) on implementing the recommendations on financial inclusion that were outlined in a 2011 report. In their Summit Declaration, the G20 Leaders endorsed the Basic Set of Financial Inclusion Indicators developed by the GPFI. In addition, the Group supported ongoing efforts to create an additional GPFI subgroup with a focus on consumer protection and financial literacy issues to complement the already existing three subgroups.
In the realm of standard-setting, the Leaders commended the Financial Action Task Force for recognizing the potential to increase the reach and the effectiveness of AML/CFT measures by considering financial inclusion. Looking forward, the Leaders also welcomed the forthcoming GPFI conference on standard setting bodies and financial inclusion to be held on October 28 and 29 in Basel, Switzerland, hosted by the Financial Stability Institute and called on the GPFI to report progress on this conference to the G20 Finance Ministers in November. The Basel conference will focus on promoting financial inclusion through proportionate standards and guidance.
Recognizing the key role that SMEs play in economic development, and poverty reduction, the G20 Leaders welcomed the launch of the SME Finance Compact that will allow the development of innovative models and approaches to address the specific challenges and constraints faced by low income countries with regards to SME finance.
At a side event during the G20 Summit in Los Cabos, the “G20 Financial Inclusion Peer Learning Program” was formalized. Under the program, likeminded G20 and non-G20 countries commit to create national programs mandating actions to promote financial inclusion.