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Consumer protection laws and regulations in deposit and loan services : a cross-country analysis with a new data set

Author

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  • Ardic, Oya Pinar
  • Ibrahim, Joyce A.
  • Mylenko, Nataliya

Abstract

Consumer protection and financial literacy can contribute to improved efficiency, transparency, competition, and access in retail financial markets by reducing information asymmetries and power imbalances between providers and users of financial services. Financial consumer protection has gained significance in policy debates, especially since the onset of the financial crisis in 2008. This paper presents the results of a survey on consumer protection regulations in 142 countries. The findings indicate that although consumer protection legislation is in place in the majority of countries, these do not necessarily address the issues specific to financial services. There is some evidence that enforcement powers and monitoring capacity are limited in many countries, obstructing the effective implementation of the existing regulations. Furthermore, independent third party dispute resolution mechanisms are not widespread. The paper also compiles comprehensive information on laws and regulations relevant for consumer protection and discusses a number of challenges related to empirical analyses of financial consumer protection to enable cross-country comparison.

Suggested Citation

  • Ardic, Oya Pinar & Ibrahim, Joyce A. & Mylenko, Nataliya, 2011. "Consumer protection laws and regulations in deposit and loan services : a cross-country analysis with a new data set," Policy Research Working Paper Series 5536, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5536
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    References listed on IDEAS

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    3. Lusardi, Annamaria & Tufano, Peter, 2015. "Debt literacy, financial experiences, and overindebtedness," Journal of Pension Economics and Finance, Cambridge University Press, vol. 14(04), pages 332-368, October.
    4. Ardic, Oya Pinar & Heimann, Maximilien & Mylenko, Nataliya, 2011. "Access to financial services and the financial inclusion agenda around the world : a cross-country analysis with a new data set," Policy Research Working Paper Series 5537, The World Bank.
    5. Gregory E. Elliehausen, 2010. "Implications of behavioral research for the use and regulation of consumer credit products," Finance and Economics Discussion Series 2010-25, Board of Governors of the Federal Reserve System (U.S.).
    6. Rutledge, Susan L., 2010. "Consumer protection and financial literacy : lessons from nine country studies," Policy Research Working Paper Series 5326, The World Bank.
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    Cited by:

    1. Irina Kunovskaya & Brenda Cude & Natalia Alexeev, 2014. "Evaluation of a Financial Literacy Test Using Classical Test Theory and Item Response Theory," Journal of Family and Economic Issues, Springer, vol. 35(4), pages 516-531, December.
    2. Mohamad Fazli Sabri, 2014. "The Development of Consumer Protection Policies in Malaysia," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(6), pages 98-108, June.
    3. Marimuthu SELVAKUMAR & Veluchamy SATHYALAKSHMI, 2015. "Financial consumer protection and customer satisfaction. A relationship study by using factor analysis and discriminant analysis," EuroEconomica, Danubius University of Galati, issue 2(34), pages 71-94, November.
    4. Qifeng Zhang & Josephine B. Valle-Sison, 2014. "Financial inclusion and regulatory implications," Chapters,in: Global Shock, Risks, and Asian Financial Reform, chapter 15, pages 600-627 Edward Elgar Publishing.
    5. Inutu Lukonga, 2015. "Islamic Finance, Consumer Protection, and Financial Stability," IMF Working Papers 15/107, International Monetary Fund.

    More about this item

    Keywords

    Financial Literacy; Access to Finance; Emerging Markets; Debt Markets; Bankruptcy and Resolution of Financial Distress;

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