Inclusion and Linkages to Stability, Integrity and Consumer Protection
Financial sector policy makers and international standard-setting bodies (SSBs) pursue the four objectives of financial inclusion, stability, integrity, and consumer protection – what are collectively known as the I-SIP objectives. Financial inclusion – a more recent addition to the list of core policy objectives for financial sector regulators and supervisors – is receiving increasing recognition by both global bodies (e.g. the United Nations, the G20 Leaders and Finance Ministers/Central Bank Governors, the SSBs) and country-level policy making bodies.
How are financial inclusion and the other objectives linked? And how can policy makers pursue all four objectives in such a way that negative outcomes, or trade-offs between the financial objectives, are minimized?
CGAP has embarked on a work stream aimed at understanding just this. In 2012, CGAP carried out pilot research in South Africa to begin developing a framework to study I-SIP linkages in the context of country-level policy making, as well as to develop a methodology for policy makers to optimize the linkages in practice. Since then, similar rapid research exercises have been undertaken in Pakistan and in Russia. Further country-level I-SIP rapid research exercises are planned to continue refining both the I-SIP framework and within it the I-SIP methodology.
This work is building an evidence base for policy makers seeking better ways to pursue the I-SIP objectives simultaneously. The G20 Finance Ministers and Central Bank Governors, in their November 2012 communiqué, called for SSBs to provide guidance and engage with the G20’s Global Partnership for Financial Inclusion (GPFI) to study I-SIP linkages. In addition, the GPFI’s Subgroup on Regulation and SSBs (of which, CGAP is lead Implementing Partner) is exploring the linkages among the I-SIP objectives.
- Financial Inclusion - Linkages to Stability, Integrity and Protection: Insights from the South African Experience
- Financial Inclusion and the Linkages to Stability, Integrity and Protection: Insights from the Russia Experience
- Observations and Lessons for the I-SIP Methodology from Pakistan
- Financial Inclusion and Stability: What Does the Research Show?