Institutional Arrangements for Financial Consumer Protection
There is growing evidence that financially inclusive countries are more financially stable and exhibit better micro- and macro-economic conditions conducive to financial well-being of individual consumers. In order to produce significant economic a...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/09/26745343/technical-note-institutional-arrangements-financial-consumer-protection http://hdl.handle.net/10986/25196 |
| Summary: | There is growing evidence that
financially inclusive countries are more financially stable
and exhibit better micro- and macro-economic conditions
conducive to financial well-being of individual consumers.
In order to produce significant economic and societal
benefits, financial inclusion needs to be promoted in an
environment where it is safe for consumers to use financial
services and products. Strong financial consumer protection
(FCP) helps ensure that the growing use of financial
services benefits consumers and does not create undue risks
while also supporting financial stability, integrity, and
inclusion objectives. Building upon the fifteen most recent
World Bank diagnostic reviews and informed by key guidance
and relevant research, this note deals exclusively with
institutional arrangements for FCP that refer to the number,
capacity, organization, structure, resources, and processes
of the agency(ies) responsible for FCP regulation and
supervision of financial institutions. Institutional
arrangements are one of the key determinants of efficiency
and ultimate success of any FCP framework. This note is
intended to assist policymakers, regulators, and supervisors
seeking to establish new institutional arrangements or
strengthen the existing ones in their respective countries.
The note discusses importance of FCP, main models around the
world, their advantages and disadvantages, as well as
principal challenges faced by FCP agencies. |
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