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Global Survey on Consumer Protection and Financial Literacy Preliminary Results

Global Survey on Consumer Protection and Financial Literacy Preliminary Results. June 14, 2013 Moscow. Nataliya Mylenko World Bank. Global Survey on Consumer Protection and Financial Literacy.

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Global Survey on Consumer Protection and Financial Literacy Preliminary Results

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  1. Global Survey on Consumer Protection and Financial Literacy Preliminary Results • June 14, 2013 • Moscow • NataliyaMylenko • World Bank

  2. Global Survey on Consumer Protection and Financial Literacy Who? Financial regulators (central banks, bank supervisory agencies, financial consumer protection and market conduct regulators where exist) What? Financial consumer protection and financial literacy framework and implementation arrangements for deposit and credit services. Why? Review of trends and benchmarking practices in financial consumer protection around the world to assist countries in policy reforms and to stimulate the debate on this topic.

  3. Global Survey on Consumer Protection and Financial Literacy Topics Covered: 1 CONSUMER PROTECTION • Legal framework (applicable laws) • Institutional arrangements (institutional structure and functions and powers of relevant authorities) • Disclosure Requirements (account opening, periodic statements, and other) • Fair Treatment (deceptive advertising, bundling, abusive collection practices, etc.) • Responsible Lending (ensuring affordability and avoiding overindebtedness) • Dispute Resolution and Recourse (set-up, timeliness, accessibility, type of complaints) 2 FINANCIAL LITERACY • Activities implemented in relation to financial education / literacy. • Responsibility and institutional arrangements to enforce financial education / literacy.

  4. Global Survey on Consumer Protection and Financial Literacy • Process and Preliminary Results Respondents: So far, 107 countriesresponded, including all G20 countries (except India). Next Steps: • Data analysis and follow up ongoing • Final results expected by September 2013

  5. Most countries have a legal framework in place, and the number of countries with a legal framework for CPFL increased between 2010 and 2013. Many countries with existing laws also passed amendment or issued new regulations Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 98 economies with data for 2010 and 2013

  6. Legal framework for CPFL is diffused – in more 80% of economies a combination of consumer protection laws and financial legislation applies Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 105 economies with data for 2013

  7. Mirroring diffused legal framework, in most countries multiple regulatory and supervisory agencies have a responsibility for financial consumer protection. Institutional framework is determined by existing bank supervision and overall consumer protection institutional framework Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 101 economies with data for 2013

  8. More countries assigned a legal responsibility for financial consumer protection to financial supervisors and created dedicated teams or units between 2010 and 2013 Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 98 economies with data for 2010 and 2013

  9. More than half of the economies with a dedicated team for financial consumer protection, have it separately from prudential supervision Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 90 economies responding to this question in 2013

  10. Responsible agencies broadened the range of compliance monitoring tools between 2010 and 2013, especially in terms of collecting statistics on the number of complaints. Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 98 economies with data for 2010 and 2013

  11. Agencies with dedicated units or teams use a broader range compliance tools beyond onsite inspections Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 87 economies with data for this question 2013

  12. In most economies responsible agencies have authority to monitor complaints, but not to take direct actions to resolve complaints Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 90 economies with data for this question 2013

  13. Most economies have a third party dispute resolution mechanism in place. Resolution mechanisms Supervisory agencies operate an ombudsman-like service in a third of the economies with financial ombudsman. Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 104 economies.

  14. Responsible lending. Most countries indicated that they have some form of responsible lending provisions (78 out of 104). There are 40 countries with explicit limits such as LTV or DSR, double the number in 2010 Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 104 economies.

  15. Financial literacy. Most financial regulators (76%) are involved in the efforts to improve financial literacy. Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 104 economies.

  16. Most regulators are involved in the development of training materials and delivering training directly. This also includes various initiatives to improve general awareness of the public on financial sector issues Note: Global Survey on Financial Consumer Protection. Preliminary results as of May 2013. Based on data for 104 economies.

  17. Summary and next steps • Financial regulators play an important role in implementing financial consumer protection laws and regulations • There is a significant variation among countries in terms of the approach for regulatory and institutional structure for financial consumer protection • Financial consumer protection and responsible finance is an active area of reform and further assessment of the effectiveness of various regulatory measures is necessary • Most financial regulators are involved in delivering financial literacy programs and formulating financial literacy and education strategies. There is a significant variation in the approach taken. • Final results are expected in September 2013

  18. THANK YOU! • For more information: • www.worldbank.org/financialinclusion • responsiblefinance.worldbank.org

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