Armenia : Diagnostic Review of Consumer Protection and Financial Literacy, Volume 1. Key Findings and Recommendations
The objectives of the diagnostic review of consumer protection and financial literacy for Armenia are: (i) to assess the existing financial consumer protection framework, by reviewing laws, regulations and practices in Armenia compared to internati...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/06/17510032/armenia-diagnostic-review-consumer-protection-financial-literacy http://hdl.handle.net/10986/13226 |
| Summary: | The objectives of the diagnostic review
of consumer protection and financial literacy for Armenia
are: (i) to assess the existing financial consumer
protection framework, by reviewing laws, regulations and
practices in Armenia compared to international good
practices; and (ii) to provide recommendations on ways to
improve consumer protection and financial literacy in
Armenia. The review provides a detailed assessment of the
institutional, legal and regulatory framework in four
financial segments, namely banking, non-bank credit
institutions, securities, and insurance. Many key steps have
already been taken in financial consumer protection,
especially at the regulatory and institutional levels.
Regarding the institutional framework, adequate resources
need to be allocated to the consumer protection team and
modern supervisory tools should be made available. Consumer
organizations should be strengthened and motivated to assist
the Central Bank of Armenia (CBA) in market monitoring. In
terms of consumer disclosure, the CBA should issue
regulations that require financial institutions to provide
clear, understandable, timely, comparable and standardized
information to consumers. In the area of regulation of
business practices, the CBA should require that sales agents
are well trained and should test them regularly. All
financial institutions should regularly analyze the
complaints received and the analysis should be provided to
the CBA. The Steering Committee for the National Strategy of
Financial Education should become the key body to manage
financial education in Armenia. |
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