Financial inclusion: guidance on the regulation and supervision of institutions published by the Basel Committee

27 September 2016

Press release

The Basel Committee on Banking Supervision has today issued final Guidance on the application of the Core Principles for Effective Banking Supervision to the regulation and supervision of institutions relevant to financial inclusion. The Basel Committee's Core Principles for Effective Banking Supervision are the de factominimum standard for sound prudential regulation and supervision of banks and banking systems.

The Guidance published today identifies 19 of the total 29 Basel Core Principles where additional guidance is needed in the application of the Core Principles to the supervision of financial institutions engaged in serving the financially unserved and underserved. The Guidance also specifies the "Essential Criteria" and "Additional Criteria" associated with the Core Principles that have specific relevance to financial inclusion. The problem of financially unserved and underserved sectors of society is a global issue. In recognition of this, the Guidance is useful to both Basel Committee member and non-member jurisdictions. This includes those jurisdictions in which bank supervisors are striving to comply with the Core Principles and which may implement this Guidance gradually over time.

The final Guidance reflects comments received on a consultative version published in December 2015. It builds on past work by the Committee to elaborate additional guidance in the application of the Core Principles to the supervision of financial institutions engaged in serving the financially unserved and underserved. This includes a report on the Range of practice in the regulation and supervision of institutions relevant to financial inclusion and expands on Microfinance activities and the Core Principles for Effective Banking Supervision.