Country Studies Provide Powerful Lessons in Financial Consumer Protection

Until the financial crisis of 2007, the global economy was adding an estimated 150 million new consumers of financial services each year. Rates of increase have since slowed but the growth continues. Most new consumers are in developing countries where consumer protection and financial literacy are still in their infancy. This is particularly true in countries that have moved from central planning to market economies where protecting consumers is necessary to ensure stable and competitive financial markets and give new consumers confidence in the formal financial systems. The global financial crisis has highlighted the importance of consumer protection and financial literacy for the stability of the financial sector. In the US, the rapid growth of complex residential mortgage products, combined with securitized instruments which were sold to poorly informed parties, has caused much turmoil. Financial institutions worldwide have been obliged to write off trillions of dollars of assets. In Europe and Central Asia (ECA) too, damage to the financial sector was serious.

Bibliographic Details

Main Author:	Rutledge, Sue
Language:	English
Published:	World Bank, Washington, DC 2010-07
Subjects:	ABILITY OF CONSUMERS, ACCURATE INFORMATION, ACTION PLANS, ARBITRATION, ASSETS, BANK CREDIT, BANK POLICY, BANKING SECTOR, BANKS, BASIC FINANCIAL SERVICES, BUSINESS MODEL, BUSINESS PRACTICES, CAPABILITY, CENTRAL BANK, CODES OF CONDUCT, COLLECTION AGENCIES, COLLECTION OF PAYMENTS, COMMERCIAL BANKS, COMPETITIVE FINANCIAL MARKETS, CONFLICTS OF INTEREST, CONSUMER BEHAVIOR, CONSUMER COMPLAINTS, CONSUMER CONFIDENCE, CONSUMER CREDIT, CONSUMER CREDITS, CONSUMER DISCLOSURE, CONSUMER PROTECTION, CONSUMER PROTECTION MEASURES, CONSUMERS, CONTRACT PROVISIONS, CONTRIBUTION, COURT PROCESS, COURT SYSTEMS, CREDIT INSTITUTIONS, CREDIT REPORTING, DEBT, DEBT COLLECTION, DEBT COLLECTORS, DECEPTIVE PRACTICES, DEPOSIT, DEVELOPING COUNTRIES, DISPUTE RESOLUTION, DISPUTE RESOLUTION MECHANISMS, EMERGING MARKETS, EXPOSURE, FAMILY MEMBER, FINANCIAL CONSUMER, FINANCIAL CONSUMERS, FINANCIAL CONTRACTS, FINANCIAL CRISIS, FINANCIAL EDUCATION, FINANCIAL EDUCATION PROGRAMS, FINANCIAL INFORMATION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INVESTMENT, FINANCIAL LITERACY, FINANCIAL LITERACY SURVEY, FINANCIAL LITERACY SURVEYS, FINANCIAL MARKETS, FINANCIAL PRODUCTS, FINANCIAL QUESTIONS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SERVICE, FINANCIAL SERVICE PROVIDERS, FINANCIAL SERVICES, FINANCIAL SERVICES PROVIDERS, FINANCIAL STABILITY, FINANCIAL STATEMENTS, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FOREIGN CURRENCY, FORMAL FINANCIAL SECTOR, FRAUD, GLOBAL ECONOMY, HIGH SCHOOL STUDENTS, HOUSEHOLD DEBT, INCOME, INDIVIDUAL CONSUMERS, INFORMATION DISCLOSURE, INFORMED CONSUMERS, INSTITUTIONAL FRAMEWORKS, INSURANCE, INTEREST RATES, LEGAL OBLIGATIONS, LIQUIDITY, LIQUIDITY RISK, LOAN, LOAN PERFORMANCE, LONG-TERM INVESTMENT, LONG-TERM LOANS, LONG-TERM SAVINGS, MANDATE, MARKET DISCIPLINE, MARKET ECONOMIES, MARKET FAILURE, MICROFINANCE, MORTGAGE, MORTGAGE PRODUCTS, NATIONAL BANK, NEW INVESTORS, PAYOFF, PERSONAL DATA, PERSONAL INFORMATION, PRIVACY, PRIVATE PENSIONS, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PROFESSIONAL ASSOCIATIONS, RAPID GROWTH, REGULATORS, REGULATORY FRAMEWORKS, REGULATORY LICENSES, RESIDENTIAL MORTGAGE, RESPONSIBILITIES, RETAIL FINANCIAL SERVICES, RETIREMENT, SECURITIES, SENIOR, SERVICE CONTRACTS, STANDARD CONTRACT, STANDARD CONTRACTS, STOCK MARKET, SUPERVISION, SUPERVISORY AGENCIES, SUPERVISORY AGENCY, SURVEYS OF CONSUMER, TECHNICAL ISSUES, TELEPHONE, TELEPHONE LINES, TRANSPARENCY, VALUABLE, VARIABLE INTEREST RATES,
Online Access:	http://documents.worldbank.org/curated/en/2010/07/12817898/country-studies-provide-powerful-lessons-financial-consumer-protection https://hdl.handle.net/10986/10171
Tags:	Add Tag No Tags, Be the first to tag this record!