Draft Resolution 1.

X
United Nations

General Assembly Distr.: General

2020
Second Committee

Topic: Banking Policy for Avoiding Global Recessions

Sponsors : Austria, Montenegro, Vanuatu

Signatories : Albania, Australia, Bangladesh, Bhutan, Bulgaria, Canada, Cyprus,
Dominican Republic, Greece, Jamaica, Japan, Kuwait, Malta,
Micronesia, New Zealand, Niger, Pakistan, Papua New Guinea, Rwanda,
Sierra Leona, Spain, Switzerland, Trinidad and Tobago, Senegal,
Venezuela, Zambia

The General Assembly,

Reaffirming its resolution 53/172 of 15 December 1998 on financial crisis and its
impact on growth and development, especially in the developing countries,
Recognizing that the increasing globalization of financial markets and capital flows
has represented Governments, the multilateral financial institutions and the international
community at large with new challenges and opportunities for the mobilization of adequate
and predictable resources for promoting economic development and social welfare,
Stressing the importance of the provision of adequate financial resources for
development of developing countries, including through public and private financial flows,
international trade, official development assistance and debt relief, and that the
comprehensive and integrated consideration of these issues should constitute a very important
element of the dialogue and collaboration between the United Nation system and the Bretton
Woods institutions,
Deeply concerned at the continuing decline in official development assistance, which
is a significant external source of financing for development and an important support to the
efforts of developing countries, in particular the least developed countries, for eradicating
poverty and tackling basic social needs, especially where private capital flows may either be
inadequate or unavailable,
 Emphasizing the importance of finding a lasting solution for the external debt and
problem of developing countries in order to resources for financing their development efforts,
Noting the important need to ensure that capital mobility benefits developing
economies rather than harming them, and in particular noting that short-term speculative
capital flows, due to their highly volatile nature, often have negative impacts on the long-term
goals of developing countries,

Hereby resolves to:

1. Recognizes the importance of international financial stability, and in this

context calls on developed countries, in particular major industrialized countries, to ensure
that their macroeconomic policies are consistent with the priorities of growth and
development, in particular of developing countries;
2. Stresses the importance of having an enabling international environment
through strong cooperative efforts by all countries and institutions to promote global
economic recovery, to adopt and pursue coordinated policies conducive to world economic
growth and international financial stability and promotion of a favorable external economic
environment for a sustained global economic recovery, including the full recovery of crisis-
affected countries;
3. Also stresses the importance at the national level of strong domestic
institutions to promote achievement of growth and development, including through sound
macroeconomic policies and policies aimed at strengthening the regulatory and supervisory
systems of the financial and banking sectors, including adequate institutional arrangements
both in countries of origin and destination of international capital flows;
4. Calls upon developed partners to carry their efforts to increase official
development assistance and their efforts aimed at strengthened debt relief, improved market
access and enhanced balance-of-payment support;
5. Emphasizes the need to develop an early warning system to prevent or, as the
case may be, to take timely action to address the threat of financial crisis through Financial
Capacity Building, with the following mechanism:
a. A collaborative project involving the Global Economic Monitoring Branch
(GEM) and the International Monetary Fund (IMF). Research and analysis
that are being conducted by GEM will involve the IMF of the pre-recession
anticipation confirmed by the accurate results alongside the establishment of a
 new division specializing in economic recession consists of experts and
analysts to decide the next actions. This collaborative project will reach its
peak on the Prime Annual Summit conducted in the appointed country with
the most efficient economic system based on the criteria agreed by the
member states;
b. Raising the awareness of economic conditions through media exposure
including the public dialogues conduction and collaborating with the civil
society;
c. Incorporating global banks with Financial Technology Companies with the benefits
of the more systematic banking system and income expansion through a Smart
Banking application equipped with loan access and interest rates compelled with
special assistance on countries in need by conducting practical support;
d. Conducting Capital Requirements Tightening the capital requirements through
standardization of Risk-Weighted Assets;
e. Proposing the implementation of 15 Measures of Base Erosion and Profit
Shifting (BEPS) created by the Organisation for Economic Cooperation and
Development (OECD).
6. Proposes Global Banks and Financial Technology Companies to provide the
benefits of a more systematic banking system and income expansion through a
Smart Banking Application which focuses on special assistance in impoverished
countries by conducting practical support for small-medium enterprises by
implementing:
a. Smart Banking Applications using technology from FinTech companies and
access to money from banks;
b. Creating branchless banking programs that promote banking and financial
services for all through the help of banks and other parties; 
c. Uses the MARY data privacy and cybersecurity protocols to secure
consumers’ personal and financial information;
d. Raising economic awareness through media exposure, consisting of Public
Dialogue Initiatives and government-civil society collaboration to minimize
the damage of recession, with the inclusion of  other UN Bodies and Non-
Governmental Organizations to promote a multi-sector platform for advanced
cross-sector learning;
 e. Using the “regulatory sandbox” to safely perform the experimentation of web
development projects and converge with the use of fintech to create a dynamic
financial environment, where data is not filtered and thus Obtain the
confidence and security of our citizens so that they can make use of new
financial technologies without taking risks with:
I. Banking supervisors and regulators will participate with consumer and
data protection agencies;
II. Each sandbox will have a trial period of six months;
III. If the sandbox produces positive results, the program in question will
be officially launched.
7. Recommends the Multilateral Inclusive Development (MNID) plan for the
creation of integrated national funds, especially for proper microfinancing
channels to Micro, Small, and Medium Enterprises (MSME) for the realization of
Sustainable Development Goals 8, 12, and 17, especially in the Least Developed
and Developed Nations, with a regional and global advisory framework alongside
the Bretton Woods Institutions, for better and efficient channelization of the funds
by increasing the number of stakeholders, with the following agenda and
structure:
a. Composed of national funds, financial aid provided by other nations and non-
profit organizations, debt from multilateral financial institutions and
conditional bilateral and multilateral debt,
b. Maintenance through appointment of a Bureau of Maintenance (BoM) under
the General Assembly that submits quarterly reports, comprising of a Director
assisted by 5 regional representatives, one from each continent and advised by
the Inter-Agency Task Force on Financing for Development,
Intergovernmental Group of Experts on Financing for Development of the
United Nations on Trade and Development, the World Economic Forum and
the Bretton Woods Institutions with the term being 3 years, with a provision
for extension for a duration of up to half the duration of the defined tenure,
c. Application:
I. formulation of regional, nation-based financial policies with special
emphasis on aiding MSME;
II. building trade capacity and socio-economic infrastructure;
 III. easing regional trade flow and co-operation with special emphasis on
promoting MSME;
8. Decides to remain actively seized in the matter.