Guidance on the application of the Core Principles for Effective Banking Supervision to the regulation and supervision of institutions relevant to financial inclusion

This document reflects comments received during a consultation period and 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. This includes a report of 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

The 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. Many of the unserved and underserved customers reside in countries that are not BCBS members. In recognition of this, 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.

Other BIS publications on financial inclusion

• "Measures of financial inclusion - a central bank perspective" (Irving Fisher Committee on Central Bank Statistics), IFC Report, June 2016. 
• Payment aspects of financial inclusion (Committee on Payments and Market Infrastructures and World Bank Group), April 2016.
• Guidance on the application of the Core principles for effective banking supervision to the regulation and supervision of institutions relevant to financial inclusion (Basel Committee on Banking Supervision), December 2015.
• "Financial inclusion and education - issues for central banks" (Her Majesty Queen Maxima of the Netherlands), speech at the All Governors' Meeting, BIS, Basel, 9 November 2015.
• "Financial inclusion - issues for central banks" (A Mehrotra and J Yetman), BIS Quarterly Review, March 2015, pp 83-96.
• Range of practice in the regulation and supervision of institutions relevant to financial inclusion (Basel Committee on Banking Supervision), January 2015.
• "Financial inclusion and optimal monetary policy" (A Mehrotra and J Yetman), BIS Working Papers, no 476, December 2014.
• "On harnessing the potential of financial inclusion" (P Dittus and M Klein), BIS Working Papers, no 347, May 2011.
• Microfinance activities and the Core Principles for Effective Banking Supervision (Basel Committee on Banking Supervision), August 2010.