Global Standards Proportionality Working Group

Alliance for Financial Inclusion Global Standards Proportionality Working Group participant

The Global Standards Proportionality (GSP) Working Group provides a platform to facilitate peer learning on issues policymakers and regulators face in achieving a balance between financial inclusion, integrity and stability, as well as to examine the proportionate implementation of the global standards set by global Standard-Setting Bodies (SSBs).

The working group provides technical support on the proportionate application of global standards to the AFI Global Standards Committee (GSC) and supports, exchanges and discusses measures that strengthen and balance both financial sector stability and integrity and financial inclusion. The working group has also advanced thought leadership on practical solutions to the emerging challenge of de-risking by financial institutions, and proportionate regulatory frameworks for non-bank financial institutions which distinguish between high-risk shadow banking and genuine innovation for financial inclusion.  

In addition to providing a platform for policymakers for mutual learning, information sharing and dissemination of lessons learned from the experience with these cases, the GSP Working Group establishes a consultative mechanism with various stakeholders, including the FATF (Financial Action Task Force), FATF-style Regional Bodies (FSRBs), the Basel Committee on Banking Supervision (BCBS), Financial Stability Board (FSB), International Association of Deposit Insurers (IADI) and other international standard-setting bodies and identifies promising cases on how the regulation (emerging in developing countries) has flexibly responded to new business models that impact on financial inclusion.

The GSP Working Group aims to broaden the understanding of how to achieve effective balance between implementation of global standards such as the FATF 40 Recommendations, the Basel Core Principles, and the IADI Core Principles for Deposit Insurance, including methodologies for undertaking appropriate risk assessments as such global standards are implemented in order to avoid unintended consequences for financial inclusion. Members also exchange information on the opportunities and risks associated with new technologies that could potentially impact regulatory compliance.

View our GSP Working Group Fact Sheet to learn more about the working group and its policy changes and peer reviews.