RIM Issues Expert Comments on the Basel Committee for Banking Supervision’s Guidance on the Application of the Core Principles for Institutions Relevant to Financial Inclusion

Posted by Kevin Fryatt, Director, Risk management Initiative in Microfinance (RIM)

RIM recently brought together a team of microfinance risk management experts to develop and submit comments on the Basel Committee on Banking Supervision’s (BCBS) Guidance on the application of the Core principles for effective banking supervision to the regulation and supervision of institutions relevant to financial inclusion published in December 2015. As outlined by the BCBS, this consultative document builds on past work by the Committee to elaborate additional guidance in the application of the Committee’s Core principles for effective banking supervision to the supervision of financial institutions engaged in serving the financially unserved and underserved. The proposed Guidance identifies 19 of the total 29 Core Principles where additional guidance is needed, and both Essential Criteria and Additional Criteria which have specific relevance to the financial inclusion context. The Guidance is intended to be useful to both BCBS member and non-member jurisdictions, including those jurisdictions in which supervisors are striving to comply with the Core Principles and who may implement this Guidance gradually over time.

To read RIM’s comments on the proposed Guidance, download the submission here.