United Nations (UN)’s International Day of Banks is annually observed across the globe on December 4 to recognise the vital role of banking systems in the Member States in contributing to the improvement of the standard of living.
- 4th December 2022 marks the observance of the 3rd International Day of Banks.
Background:
i. The United Nations General Assembly (UNGA) adopted the resolution A/RES/74/245 on 19th December 2019 and proclaimed December 4 of every year as International Day of Banks.
ii. The 1st International Day of Banks was observed on 4th December 2020.
Addis Ababa Action Agenda:Â
i. The Addis Ababa Action Agenda was adopted at the 3rd International Conference on Financing for Development, held in Addis Ababa, Ethiopia in 2015 and eventually endorsed by the UN General Assembly in its resolution A/RES/69/313 of 27 July 2015.
- It was adopted by the 193 UN Member States attending the Conference under the leadership of Ethiopian Foreign Minister Tedros Adhanom Ghebreyesus.
ii. It lays the groundwork for the implementation of the 2030 Agenda for Sustainable Development.
iii. It provides a new global framework for financing sustainable development by aligning all financing flows and policies with economic, social and environmental priorities.
The Principles for Responsible Banking:Â
i. The UN Principles for Responsible Banking collaborates with the banking community to accelerate a positive global transition for people and the planet.
ii. In the year following the framework’s launch, the number of signatories to the Principles for Responsible Banking has increased from 130 to more than 190.
- It represents more than a third of the global banking industry and about 1.6 billion clients globally.
Risks to sustainable development:
i. World economic growth remains steady at around 3%, but has likely peaked.
ii. More than half a trillion dollars (USD 500 billion) of goods are subject to trade restrictions, which is 7 times more than in the previous reporting period.
iii. Debt risks are increasing: several countries, including roughly 30 least developed and other vulnerable countries, are either in or at high risk of debt distress, limiting their ability to invest in the Sustainable Development Goals (SDGs).
Banking Sector in India:Â
i. According to the India Brand Equity Foundation (IBEF), India accounts for 40% of global digital transactions, compared to the world’s industrialised nations.
ii. The Indian banking system consists of 12 public sector banks, 22 private sector banks, 44 foreign banks, 43 regional rural banks, 1,484 urban cooperative banks and 96,000 rural cooperative banks in addition to cooperative credit institutions.
About the United Nations (UN):
Secretary-General- António Guterres
Headquarters- New York, USA
Establishment- 1945
