Because it is a statutory mandate of the Central Bank in Malaysia, it has enabled Bank Negara to lead and drive the financial inclusion agenda with the support of our key domestic partners and stakeholders. With growing global concerns over rising inequality and the disproportionate impact of crises on the poor, there has been considerable focus by Governments and policymakers to ensure that no segment of society is left behind in participating and benefitting from the nation’s development. But what of the role of the financial services industry? It is worth noting that 14 out of the 17 SDGs include specific targets that focus at some level on the financial sector. To mention a few: On poverty: The SDGs include a specific target to build resilience of the poor and those in vulnerable situations; On hunger: Targets include doubling productivity and incomes of small-scale food producers through secure and equal access to financial services; On health and well-being: Ensure universal health coverage, including financial risk protection; On education: Ensure all youth and a substantial proportion of adults achieve literacy and numeracy; On decent work and economic growth: Encourage the formalisation and growth of micro and small and medium enterprises, including through access to financial services; On industry, innovation and infrastructure: Increase access of small scale industrial enterprises to financial services; and Of particular interest to this forum, on inequality: Reduce the transaction costs of migrant remittances to less than 3 per cent and eliminate remittance corridors with costs higher than 5 per cent.
Regulation should only be considered if the objective is abundantly clear and if there is overwhelming evidence that market participants lack the incentives or the capability to adequately manage these risks themselves. Rather than seeking regulation, market participants, central banks and regulators should focus on strengthening an already active dialogue with the aim of furthering our understanding of new types of risk associated with modern financial markets. BIS Review 44/2006  1