Other Financial Accountability Study

150 items available

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https://hdl.handle.net/10986/2186

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Complaints Handling within Financial Service Providers: Principles, Practices, and Regulatory Approaches
(World Bank, Washington, DC, 2019-06) World Bank
Core to an effective financial consumer protection framework is an accessible and efficient recourse mechanism that allows consumers both to know and to assert their rights to have their complaints addressed and resolved in a transparent and just way within a reasonable timeframe. Complaints handling mechanisms are especially important for low-income and vulnerable financial consumers, to whom timely and effective recourse processes can have a decisive influence over their trust in their financial service provider (FSP) and in the financial sector in general. Increased trust contributes to consumers' uptake and sustained usage of financial services and, consequently, their economic livelihoods. Financial consumer complaints handling mechanisms comprise two stages: complaints that are handled by FSPs, generally referred to as internal dispute resolution (IDR); and complaints that, if not satisfactorily resolved, are handled by an alternative, out-of-court process, generally referred to as external dispute resolution (EDR). There are several international sources of principles applicable to complaints handling and resolution processes and procedures to be established by FSPs. Drawing from the World Bank's Good Practices for Financial Consumer Protection, the work of international bodies, such as the Group of Twenty (G20)/Organisation for Economic Co-operation and Development (OECD) Task Force on Financial Consumer Protection, as well as selected country experiences this Technical Note highlights considerations that aim to provide a methodological guidance for regulators and FSPs when developing and implementing IDR frameworks to ensure they are consistent with international good practices. This Technical Note synthesizes concepts, principles, and practices for IDR mechanisms for financial consumers and shares examples of legal and regulatory requirements for FSPs to resolve complaints and to ensure that complaints- related data is collected, analyzed, and shared as appropriate to support improvements in FSP performance, industry market conduct, and market conduct regulation.
Papua New Guinea Financial Consumer Protection Diagnostic 2018
(International Finance Corporation, Washington, DC, 2018-10-01) International Finance Corporation; World Bank
The objective of the diagnostic review of financial consumer protection in PNG was to assess the FCP legal and regulatory framework and industry practices relevant to key parts of the regulated PNG financial sector. The diagnostic specifically considers the banking, non-bank financial institutions (NBFI), insurance, and payments sectors. Preliminary consideration has also been given to the superannuation sector and the securities, investments and informal sectors are not within the scope of this review. The review was conducted based on the revised and enhanced 2017 World Bank Good Practices for Financial Consumer Protection and the G20 High – Level Principles on Financial Consumer Protection and Digital Financial Inclusion. Regard has also been had to the Better Than Cash Alliance Responsible Digital Payments Guidelines. The following topics have been covered: (i) legal and regulatory framework; (ii) FCP supervision and capacity; (iii) transparency and fair treatment; and (iv) consumer complaints. A broad variety of stakeholders were consulted for the purposes of this diagnostic review, including government entities and regulators, representatives of the banking, NBFI, insurance and payments sectors and industry associations. The report was prepared as part of the PNG Financial Consumer Protection Project, funded by the Department of Foreign Affairs in Australia and the Ministry of Foreign Affairs in New Zealand under the PNG Partnership.
Fiduciary Systems Assessment : Maharashtra Rural Water Supply and Sanitation Program
(Washington, DC, 2014-02) World Bank
A fiduciary systems assessment (FSA) was carried out to evaluate the arrangements relevant to the program and to determine whether they provide reasonable assurance that the program funds will be used for their intended purpose. Taking into account the improvements required and the agreement on the actions required to strengthen the systems (which are reflected in the program action plan (PAP), the overall fiduciary framework is considered adequate to support program management and to achieve desired results. Government of Maharashtra (GoM) has a well-developed budgetary framework that ensures allocation of adequate resources to all departments and programs. There is sufficient predictability in the availability of resources; however, to maintain transparency in GoM's financing, an exclusive budget line has been allocated to this program as is usually done by GoM for externally aided projects. Fiduciary arrangements in the sector are guided by several rules and legislations, including the state financial rules, public works department (PWD) manual, store purchase rules, Maharashtra jeevan pradhikaran (MJP) act, Zila Parishad (ZP) account code and the Bombay panchayat rules. The existing governance and accountability arrangements in water supply and sanitation department (WSSD) include the anti-corruption bureau, which enforces the prevention of corruption act, 1988; audits by the comptroller and auditor general (C and AG) of India, the country's premier auditor; right to information (RTI) act 2005; and WSSD's vigilance function and its grievance redress system (E-Pani).
Mongolia Diagnostic Review of Consumer Protection and Financial Literacy: Volume 2. Comparison with Good Practices
(World Bank, Washington, DC, 2012-12) World Bank
The Mongolian economy has grown very rapidly following the discovery of significant mineral deposits. Large investments in the mining sector have led to increased capital inflows, resulting in cheap external funding for banks and rapid credit expansion. Loans to households increased at the staggering pace of 80 percent from 2010 to 2011, despite Mongolia’s history of banking crises. Loans to Small and medium sized enterprises (SMEs) have increased by some 65 percent in the same year. Although over 78 percent of adult Mongolians have accounts at formal financial institutions and over 61 percent have debit cards - far exceeding the average in the East Asia and Pacific region - in many respects the legal and regulatory framework and enforcement have not kept pace with the expansion of lending. Some important segments of the financial sector, such as securities and insurance, are still lagging due to low consumer awareness and low levels of savings. A number of reforms have been introduced to expand the financial services market but it is clear that consumer protection and financial literacy need to be addressed in a more systematic way. This World Bank’s diagnostic review provides a detailed assessment of the institutional, legal, and regulatory framework in three segments of the financial sector: banking, securities, and insurance. Volume I summarizes the key findings and recommendations of the review and Volume II presents a detailed assessment of each financial segment compared to the Good Practices for Financial Consumer Protection.
Ukraine Strategy for Financial Services Consumer Protection and Financial Literacy (2012-17): Diagnostic Review and Action Plan, Volume 1. Main Findings and Recommendations
(World Bank, Washington, DC, 2012-04) World Bank
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.
South Africa Diagnostic Review of Consumer Protection in Non-Credit Financial Services: Key Findings and Recommendations
(World Bank, Washington, DC, 2011-12) World Bank
The consumer financial services sector in South Africa is among the most sophisticated in the world, yet nearly 40 percent of the population, especially blacks, use no formal financial services. The now ubiquitous mobile phones are dramatically changing the landscape of digital financial services but weak financial literacy and general literacy of the underserved population remain the Achilles Heel. At the same time, weak competition in the South African financial services sector is an issue – just 4 banks control over 80 percent of retail banking and over 90 percent of personal transactions, maintaining rates and fees above competitive levels. The 2010 FinScope survey found that consumer trust was higher in informal financial institutions than in the formal ones such as banks. The South African Government has embarked on a substantive program of improving the financial sector legislation and establishing a full market conduct regulator. Presented in two volumes, this World Bank’s review compares the South African framework for financial consumer protection (FCP) to international practice and provides recommendations to strengthen it. Volume I summarizes South Africa’s FCP policies, describes the recent surveys, and sets out the key findings and recommendations of the Review. Volume II provides an assessment of banking, securities, insurance, and private pensions segments and discusses the key issues in retail payments and remittances and financial education.
Kazakhstan Diagnostic Review of Consumer Protection in Financial Services: Volume 1. Key Findings and Recommendations
(World Bank, Washington, DC, 2011-01) World Bank
From 2004 to 2007, lending to households in Kazakhstan expanded rapidly at 116 percent average annual growth rate and reached 22 percent of GDP, with loans in foreign currency reaching 7 percent of GDP. The share of real estate lending doubled between 2004 and 2007, amounting to 30 percent of GDP at end-2007.Following the global financial crisis and depreciation of the Kazakh tenge, the ratio of nonperforming loans to total loans in housing and mortgage increased from 5 percent in 2008 to 30 percent in 2010. This massive disruption highlighted the need for strong consumer protection and financial capability. Kazakh banks, which had relied extensively on capital market funding, attempted to shrink the credit portfolio and increase domestic deposits with limited success since most adult Kazakhs still have no access to formal financial services, due to low trust and low incomes. The government of Kazakhstan has developed a program to build confidence in the financial sector among investors and consumers. This World Bank’s diagnostic review, conducted in support of the program, is presented in two volumes. Volume I discusses the importance of financial consumer protection, summarizes the Kazakh government`s policy, and sets out the key findings and recommendations of the Review. Volume II provides an assessment of financial consumer protection in the four key segments of the Kazakhstan’s financial sector—banking, securities, insurance, and private pensions.