CGAP2013-04-092013-04-092012-11-02https://hdl.handle.net/10986/13095International Standard-Setting Bodies (SSBs) and national policy makers-including financial regulators-pursue the core objectives of financial stability, financial integrity and financial consumer protection. These advances challenge financial regulators to consider how to optimize the linkages among the four distinct policy objectives financial inclusion, financial stability, financial integrity, and financial consumer protection. There is good reason to believe that, at the level of outcomes, ISIP objectives may be mutually reinforcing and interdependent: no long term stability without inclusion, for example, and vice versa. In practice, at the policy level, the linkages are less well known and policy makers face choices that are unnecessarily framed as tradeoffs. This report introduces and develops the concept that a proportionate approach to any financial inclusion measure (and specifically to its regulatory and supervisory design and implementation) should seek to optimize the ISIP linkages: maximizing synergies and minimizing tradeoffs and other negative outcomes. In South Africa, the four ISIP objectives are also the four pillars of national financial sector policy; and financial inclusion in various forms has been a key objective for the postapartheid period. The study sought to understand in each case: 1) whether the ISIP linkages were considered at the time of the intervention; 2) what was done to mitigate potential ISIP risks; and 3) as far as the available data allowed, what linkages have been manifest to-date.en-USCC BY 3.0 IGOACCESS TO ACCOUNTSACCESS TO ATMSACCESS TO BANKINGACCESS TO BANKING SERVICESACCESS TO CREDITACCESS TO FINANCIAL SERVICESACCESS TO MORTGAGEACCOUNT HOLDERSACCOUNTABILITYAFFORDABILITYAFFORDABLE HOUSINGAFFORDABLE HOUSING FINANCEAFFORDABLE HOUSING LENDINGAFFORDABLE HOUSING LOANSARBITRAGEARREARSBAD DEBTSBANK ACCOUNTBANK ACCOUNTSBANK ASSETSBANK FAILUREBANK HOLDINGBANK LENDERSBANK LOANBANK SUPERVISIONBANKING ASSETSBANKING CRISESBANKING CRISISBANKING LAWBANKING SECTORBANKING SUPERVISIONBORROWERCAPACITY BUILDINGCAPITAL ADEQUACYCAPITAL BASECAPITAL REQUIREMENTCAPITAL REQUIREMENTSCASH ECONOMYCASH WITHDRAWALCENTRAL BANKSCOMMERCIAL BANKSCOMMUNITY BANKSCOMMUNITY REINVESTMENTCONSUMER CREDITCONSUMER EDUCATIONCONSUMER PROTECTIONCOOPERATIVE BANKSCOOPERATIVE DEVELOPMENTCOOPERATIVESCREDIT ASSOCIATIONCREDIT COOPERATIVECREDIT COOPERATIVESCREDIT CRITERIACREDIT MARKETCREDIT PERFORMANCECREDIT RECORDCREDIT UNIONSCREDITORSDEBIT CARDDEBIT CARDSDEBTSDEMAND FOR CREDITDEPOSITDEPOSITORDEPOSITORY INSTITUTIONSDEPOSITSDIVERSIFICATIONDUE DILIGENCEECONOMIC DEVELOPMENTECONOMIC EMPOWERMENTECONOMIC GROWTHECONOMIC STABILITYEMPLOYEREMPLOYERSEMPLOYMENTEXCHANGE RATEEXCLUSIONEXCLUSIONSFINANCIAL ACCESSFINANCIAL AUTHORITIESFINANCIAL CRISISFINANCIAL EXCLUSIONFINANCIAL INSTABILITYFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL POLICYFINANCIAL PRODUCTSFINANCIAL REGULATORSFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR POLICYFINANCIAL SERVICEFINANCIAL SERVICE ACCESSFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFORMAL BANKINGFORMAL CREDITFORMAL FINANCIAL SECTORFORMAL FINANCIAL SERVICESFORMS OF CREDITFRAUDGEOGRAPHIC ACCESSGREATER ACCESSHOME IMPROVEMENTSHOME LOANHOME LOANSHOUSEHOLD INCOMEHOUSEHOLD WEALTHHOUSEHOLDSINCOME FLOWINCOME GROUPSINDEBTEDNESSINDEPENDENT RETAILINDIVIDUAL LOANINEQUALITYINFLATIONINFORMAL PROVIDERSINSTALLMENTSINSURANCE MARKETSINSURANCE POLICYINSURANCE PREMIUMSINTEREST RATEINTEREST RATE CAPSINTEREST RATESINTERNATIONAL COMMERCEINTERNATIONAL DEVELOPMENTISSUANCEJOB CREATIONLARGE BORROWERSLAWSLEGISLATIONLENDERLENDERSLEVEL OF RISKSLIVING STANDARDLOANLOAN PERFORMANCELOAN PORTFOLIOLOAN PORTFOLIOSLOAN REPAYMENTSLOCAL CURRENCYLOW MINIMUM BALANCESMANDATESMARKET DEVELOPMENTMARKET SEGMENTATIONMICRO LOANSMICROCREDITMICROFINANCEMICROINSURANCEMICROLOANMINIMUM CAPITAL REQUIREMENTMONEY LAUNDERINGMORAL SUASIONMORTGAGEMORTGAGE ACCESSMORTGAGE CREDITMORTGAGE FINANCEMORTGAGE LENDINGMORTGAGE LOANMORTGAGE LOANSMORTGAGESNATIONAL CREDITNATIONAL TREASURYNEW MARKETNONBANKSNONPAYMENTNONPERFORMING LOANSOPERATIONAL RISKOUTSTANDING LOANSPAYMENT SYSTEMPAYMENT SYSTEMSPAYROLL DEDUCTIONPAYROLL DEDUCTIONSPOINT OF SALEPOLICY ENVIRONMENTPRICING CONTROLSPRIVATE BANKSPROPERTY MARKETSPRUDENTIAL REGULATIONPRUDENTIAL REQUIREMENTSREAL ESTATEREAL ESTATE LOANSREGISTRATION REQUIREMENTSREGULATORY AUTHORITIESREGULATORY FORBEARANCEREGULATORY FRAMEWORKREGULATORY STANDARDSREMITTANCESRENEGOTIATIONREPAYMENTRESERVERESERVE REQUIREMENTSRESIDENTIAL MORTGAGERETAIL BANKRETAIL BANKSRETIREMENTRISK MANAGEMENTRISK PROFILESAVINGSSAVINGS ACCOUNTSSAVINGS GROUPSSAVINGS PRODUCTSSETTLEMENTSETTLEMENT SYSTEMSSMALL BANKSMALL LOANSSOLVENCYSOURCE OF INCOMESUBSIDIARYSUPERVISORY AGENCIESSYSTEMIC RISKTERRORISMTHE SOUTH AFRICAN RESERVE BANKTRANSACTIONTRANSPARENCYUNSECURED CREDITURBAN AREASUSURYVILLAGEVULNERABLE CONSUMERSWAGESWorld Bank10.1596/13095