Ukraine Strategy for Financial Services Consumer Protection and Financial Literacy (2012-17) : Diagnostic Review and Action Plan, Volume 1. Main Findings and Recommendations
Eight years of strong economic growth in Ukraine in 2000-2008, at an average of seven percent per year, ended with a sharp 15 percent decline in 2009. The national currency plummeted and the banking sector nearly collapsed, with non-performing loan...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/665851489602852983/main-findings-and-recommendations http://hdl.handle.net/10986/26445 |
| Summary: | Eight years of strong economic growth in
Ukraine in 2000-2008, at an average of seven percent per
year, ended with a sharp 15 percent decline in 2009. The
national currency plummeted and the banking sector nearly
collapsed, with non-performing loans increasing from 2.3
percent to 11.2 percent of total loans in 2008-2010.
According to the 2010 USAID/FINREP financial literacy
survey, 39 percent of adult Ukrainians are still unbanked
and nearly half prefer holding savings in cash. Only 15
percent of consumers trust banks and just 6 percent trust
investment funds or private pension funds. Only 17 percent
believe in a fair resolution in a dispute with a financial
institution. The Ukrainian authorities recognize that the
financial system needs to be made more resilient to future
crises and thus requires a substantial redesign of the legal
and regulatory framework of consumer protection and market
conduct in financial services. This World Bank's
diagnostic review aims to help Ukraine design a 5-year
strategy to strengthen financial consumer protection and
financial education as the fundamentals for sustainable
growth and deepening of the financial sector. The review is
presented in two volumes. Volume I contains the main
findings and recommendations of the review, and Volume II
provides a detailed assessment of Ukraine's compliance
with the international best practices summarized in the
World Bank's Good Practices for Financial Consumer Protection. |
|---|