Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices

In 2010, over 92 percent of the assets in the Nicaraguan financial system were concentrated in the banking sector, while microfinance managed over 5 percent, and all the remaining segments covered less than 3 percent. Starting in the late 1990s and...

Full description

Bibliographic Details
Main Author:	World Bank
Format:	Report
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	financial literacy access to finance financial consumer protection non-bank financial institutions insurance regulation legal framework transparency consumer rights
Online Access:	http://documents.worldbank.org/curated/en/593501486629496165/Comparison-with-good-practices http://hdl.handle.net/10986/26125

id	okr-10986-26125
recordtype	oai_dc
spelling	okr-10986-261252021-04-23T14:04:33Z Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices World Bank financial literacy access to finance financial consumer protection non-bank financial institutions insurance regulation legal framework transparency consumer rights In 2010, over 92 percent of the assets in the Nicaraguan financial system were concentrated in the banking sector, while microfinance managed over 5 percent, and all the remaining segments covered less than 3 percent. Starting in the late 1990s and until 2007, the microfinance sector in Nicaragua has expanded robustly at 20 percent average annual growth rate and has been a significant factor of economic growth, particularly in the agricultural small and medium enterprise (SME) sector. The 2008 financial crisis led to a rapid deterioration of the microfinance credit portfolio and the microfinance lending contracted by nearly 20 percent in 2009. While partly this was due to spiking interest rates, over indebtedness and slowing demand, research has shown that inadequate consumer protection and low financial literacy in the microfinance sector also played a role. In order to improve Nicaraguan consumers’ confidence in their financial institutions, this World Bank’s diagnostic review presents strengthening consumer protection in five key areas. Volume I of the review summarizes the key findings and recommendations and volume II provides a detailed assessment of the Nicaraguan consumer protection institutional, legal, and regulatory framework compared to the good practices for three financial segments, namely banking, nonbank credit institutions, and insurance. Volume II also includes an annex that analyzes the results of a field research with financial consumers in Nicaragua. 2017-02-22T17:44:45Z 2017-02-22T17:44:45Z 2011-12 Report http://documents.worldbank.org/curated/en/593501486629496165/Comparison-with-good-practices http://hdl.handle.net/10986/26125 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Financial Accountability Study Economic & Sector Work Latin America & Caribbean Nicaragua
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	financial literacy access to finance financial consumer protection non-bank financial institutions insurance regulation legal framework transparency consumer rights
spellingShingle	financial literacy access to finance financial consumer protection non-bank financial institutions insurance regulation legal framework transparency consumer rights World Bank Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices
geographic_facet	Latin America & Caribbean Nicaragua
description	In 2010, over 92 percent of the assets in the Nicaraguan financial system were concentrated in the banking sector, while microfinance managed over 5 percent, and all the remaining segments covered less than 3 percent. Starting in the late 1990s and until 2007, the microfinance sector in Nicaragua has expanded robustly at 20 percent average annual growth rate and has been a significant factor of economic growth, particularly in the agricultural small and medium enterprise (SME) sector. The 2008 financial crisis led to a rapid deterioration of the microfinance credit portfolio and the microfinance lending contracted by nearly 20 percent in 2009. While partly this was due to spiking interest rates, over indebtedness and slowing demand, research has shown that inadequate consumer protection and low financial literacy in the microfinance sector also played a role. In order to improve Nicaraguan consumers’ confidence in their financial institutions, this World Bank’s diagnostic review presents strengthening consumer protection in five key areas. Volume I of the review summarizes the key findings and recommendations and volume II provides a detailed assessment of the Nicaraguan consumer protection institutional, legal, and regulatory framework compared to the good practices for three financial segments, namely banking, nonbank credit institutions, and insurance. Volume II also includes an annex that analyzes the results of a field research with financial consumers in Nicaragua.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices
title_short	Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices
title_full	Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices
title_fullStr	Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices
title_full_unstemmed	Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices
title_sort	nicaragua diagnostic review of consumer protection in financial services : volume 2. comparison with good practices
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/593501486629496165/Comparison-with-good-practices http://hdl.handle.net/10986/26125
_version_	1764460934937444352

Nicaragua Diagnostic Review of Consumer Protection in Financial Services : Volume 2. Comparison with Good Practices

Similar Items