Contents
|
Authors:
Olimkhon Furkat Ugly Alikariev, PhD, Associate Professor, project manager, Alliance Textile Manufacturers’ Association of Light Industry, Uzbekistan
Serhiy Poliakh, Department of Finance and Banking, Cherkasy Educational and Scientific Institute of the SHEI “Banking University”, Ukraine
Pages: 78-95
DOI: 10.21272/bel.2(1).78-95.2018
Download: |
Views: |
Downloads: |
|
|
|
Abstract
The world practice shows that active activity of international organizations in the direction of improving the system of protection of the rights of consumers of financial services gives first positive results after the crisis of 2008-2009. However, the theoretical basis, declared by international organizations, does not always coincide with the actual state of events in countries with different levels of economic and social development. This problem requires a more complex solution with the use of more flexible tools. In this article, key regulatory provisions were analyzed, which are currently regulating the process of providing the system for protecting the rights of consumers of financial services. Based on world experience, it is suggested to use the so-called index of the safity of customers of the finacial services market (ISCF), which is calculated on the basis of variables, united by three structural units: financial literacy, financial consumer protection, financial inclusion, to assess the degree of customer protection. This index was calculated for 142 countries with different levels of economic development. According to the results, the highest value of the index was found in the countries with developed economies (Belgium, Great Britain, Canada, Portugal and France). It confirms that the level of the economic development correlates with ISCF and there is direct connection. So, as country is more economic developed it has higher ISCF.
Keywords: financial literacy, financial consumer protection, financial inclusion, index of the safity of customers of the finacial services market.
JEL Classification: D18, G21.
Cite as: Alikariev, O.F.U., Poliakh, S. (2018). Index of protection of the interests of consumers of the financial services market. Business Ethics and Leadership, 2(1), 78-95. Doi: 10.21272/bel.2(1).78-95.2018
References
- Aaltonen, P.G., Markowski, E.P. and Kirchner, T.A. (2010). Ingredients of financial services customer satisfaction: the case of credit card services. Journal of Academy of Business and Economics. 10(3).
- Abreu, Margarida and Mendes, Victor (2010). Financial Literacy and Portfolio Diversification, Quantitative Finance, 10(5), 515-528.
- Allen, Franklin, Asli, Demirguc-Kunt, Leora, Klapper, and Maria, Soledad Martinez Peria (2012). The Foundations of Financial Inclusion: Understanding Ownership and Use of Formal Accounts, World Bank Policy Research Working Paper 6290.
- Behrman, Jere R., Olivia, S. Mitchell, Cindy K. Soo, and David, Bravo, (2012). The Effects of Financial Education and Financial Literacy: How Financial Literacy Affects Household Wealth Accumulation, American Economic Review: Papers &Proceedings, 102(3), 300-304.
- Bond, R. (2010). Financial literacy and awareness in Ukraine: Facts and Conclusions, [in:] R. Bond, A. Kutsenko, N. Lozitskaya. – K.: USAID FINREP. Retrieved from: http://www.uaib.com.ua.
- CGAP (2009). Financial Access 2009: Measuring Access to Financial Services around the World, Washington, DC: CGAP and the World Bank.
- CGAP (2010). Financial Access 2010: The State of Financial Inclusion Through the Crisis, Washington, DC: CGAP and the World Bank Group.
- Customer suitability in the retail sale of financial products and services (2008). The Joint Forum. Bank for International Settlements April. Retrieved from: https://www.iosco.org/lib rary/pubdocs/pdf/IOSCOPD268.pdf.
- Demirguc-Kunt, Asli, Leora Klapper, Dorothe, Singer, and Peter, Van Oudheusden (2015). The Global Findex Database 2014: Measuring Financial Inclusion around the World, World Bank Policy Research Working Paper 7255.
- Dias, D. (2013) Implementing Consumer Protection in Emerging Markets and Developing Economies A Technical Guide for Bank Supervisors 2013, CGAP/World Bank.
- FSD-Kenya (2009). Definition of a Standard Measure for Consumer Interest Rates in Kenya: A Scoping Study, Nairobi: Kenya. Retrieved from: http://www.fsdkenya.or.
- Grady, R. (2012). Consumer Protection in the financial sector: Recent regulatory developments. JASSA, 4, 36.
- Grady, R. (2012). Consumer Protection in the financial sector: Recent regulatory developments. JASSA, 4, 36.
- Kang, K.H. (2015). Functions of Financial Consumer Protection Agency and Its Design in Korea, Review of Financial Information Studies, 4(1), 81–100.
- Levitin, Adam J. (2013). The Consumer Financial Protection Bureau: An Introduction, Review of Banking and Financial Law, 32, 321–69. Retrieved from SSRN: http://ssrn.com/abstract=2199678 or http://dx.doi.org/10.2139/ssrn.2199678.
- Mak, Vanessa (2012). The Myth of the “Empowered Consumer”: Lessons from Financial Literacy Studies [Tisco Working Paper Series on Banking, Finance and Services No. 03/2012; Tilburg Law School Research Paper No. 03/2013], Retrieved from: http://ssrn.com/abstract=2077539 or http://dx.doi.org/10.2139/ssrn.2077539.
- Messy, F.A. (2012). The latest development of globally recognized instruments on financial education and consumer protection, in 12th Tokyo Roundtable on Capital Market Reform in Asia: Tokyo, Japan. p. 12.
- OECD (2012). G20 High-Level Principles on Financial Consumer Protection, Organisation for Economic Co-operation and Development: Paris. p. 7.
- OECD (2014a). Effective Approaches to Support the Implementation of the Remaining G20 High-Level Principles of Financial Consumer Protection. Paris: OECD. Retrieved from: www.oecd.org/daf/fin/financial-education/G20-OECD-Financial-Consumer-Protection-.
- OECD, G20 High-Level Principles on Financial Consumer Protection (2011). Organisation for Economic Co-operation and Development: Paris. p. 7.
- Peterson, C. L. (2003). Truth, Understanding, and High-Cost Consumer Credit: The Historical Context of the Truth in Lending Act, Florida Law Review, 55, 807–903.
- Polat, A., Alsaif, A. A. (2014). Consumer Protection in Banking: Investigating the 10 High Level Principles of G20 in Saudi Arabia, Journal of Applied Finance & Banking, 4(3), 195-215.
- Poliakh, S., Alikariyev N. (2017). Evaluation Quality of Consumer Protection by Financial Markets Services. Financial Markets, Institutions and Risks, 1(3), 75-81.
- Porteous, D. (2009). Consumer Protection in Credit Markets, Policy Focus Note: 1, Financial Access Initiative. Retrieved from: [http://www.financialaccess.org].
- Porteous, D. and Helms, B. (2005). Protecting Microfinance Borrowers, Focus Note No. 27, CGAP.
- Shin, Y. (2015). Effect of Enforcement of Financial Consumer Protection on Financial Product Investment, International Conference on Social Science.
- Shin, Y., Kim, J. (2015). Effect of Financial Consumer Protection Enforcement on Financial Product Investment in South Korean Market The SIJ Transactions on Industrial, Financial & Business Management (IFBM), 3(8).
- Sundararajan, V., Udaibir, Das, and Plamen, Yossifov (2003). Cross-Country and Cross-Sector Analysis of Transparency of Monetary and Financial Policies, IMF Working Paper 03/94 (Washington: International Monetary Fund).
- Sundararajan, V., Udaibir, Das, and Plamen, Yossifov (2003). Cross-Country and Cross-Sector Analysis of Transparency of Monetary and Financial Policies, IMF Working Paper 03/94 (Washington: International Monetary Fund).
- U.S. G.A.O. (2010). Consumer Finance: Factors Affecting the Financial Literacy of Individuals with Limited English Proficiency, United States Government Accountability Office, Report to Congressional Committees, GAO-10-518, Washington, DC.
- Whitford, W.C. (1981). Structuring Consumer Protection Legislation to Maximize Effectiveness. Wis. L. Rev., p. 1018.
- Williams, T. (2013). Who Wants to Watch? A Comment on the New International Paradigm of Financial Consumer Market Regulation. Seattle University Law Review. 36(2), 1217.
- World Bank – FIRST Consumer Protection and Financial Literacy Program. Retrieved from: https://a2ii.org/sites/default/files/reports/world_bank-first_cpfl_program.pdf.
- World Bank (2014). Global Survey on Consumer Protection and Financial Literacy: Oversight Frameworks and Practices in 114 Economies. Washington, DC: World Bank. Retrieved from: http://responsiblefinance.worldbank.org/~/media/GIAWB/FL/Documents/Publications/.
- World Bank (2009). Good Practices for Financial Consumer Protection and Financial Literacy in Europe and Central Asia: A Diagnostic Tool, Washington DC: Private and Financial Sector Development Department Europe and Central Asia Region / The World Bank.
- World Bank (2011). T., Good Practices for Financial Consumer Protection, Washington DC: International Bank for Reconstruction and Development / The World Bank.
- Wright I.D.G.D. (2014). International Finance Regulation: The Quest for Financial Stability, Chapter 1, Editor: Ugeux, G, John Wiley & Sons.
|