2011年-世界发展银行全球_Kazakhstan_Diagnostic_Review_of_Consumer_Protection_in_Financial_Services___Volume_2_Review_against_Good_Practices_131页_1mb

Summary of Diagnostic Review of Consumer Protection in Financial Services in Kazakhstan

Core Content

This document presents a diagnostic review of consumer protection in the financial services sector of Kazakhstan, focusing on the banking, securities, insurance, and pensions sectors. It outlines the current legal and institutional framework, identifies key issues, and provides recommendations for improving consumer protection.

Main Points

Overview of Financial Sector Development

• Kazakhstan is in the early stage of financial market development, with a relatively low level of financial sector penetration compared to Central and Eastern Europe, and significantly lower than Western Europe.
• Banking penetration is around 11% of GDP, lower than Russia (16%), Ukraine (22%), Turkey (30%), and the Czech Republic (over 43%).
• Credit to the private sector grew rapidly from 22% in 2004 to 59% in 2007, and reached about 50% by end-2008.
• The growth of credit outpaced deposit growth, which increased from 19.4% in 2004 to 30% in 2007 and 28% by end-2008.
• The banking sector dominates the financial system, accounting for over 80% of total assets.
• The financial system was severely impacted by the global financial crisis, with a significant drop in capital inflows and liquidity constraints.

Legal Framework and Institutional Arrangements

• Kazakhstan lacks a centralized consumer protection body.
• Until August 2010, the 1991 Law on Consumer Protection governed all consumer protection matters, enforced by the courts.
• The new Law on Consumer Protection (No. 274, August 2010) establishes a general consumer protection agency and enhances consumer rights.
• The Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFN) is responsible for consumer protection in the financial sector, including the development of regulations, enforcement of consumer rights, and oversight of financial institutions.
• The Law on Banks and Banking Activity (No. 2444, 1995) also includes provisions for consumer protection, such as prudential standards, doubtful debt provisions, and supervisory powers for AFN.

Key Issues in Consumer Protection

• The credit reporting system covers less than a third of the population, with the private bureau covering only 30% of adults.
• The level of household indebtedness is increasing, with non-performing loans in this category ranging from 20% to 45% depending on the bank.
• The Financial Institutions' Association of Kazakhstan (FIAK) has not taken an active role in consumer protection, lacks a code of conduct, and does not provide adequate consumer information on its website.
• The financial sector is relatively concentrated, with the top six banks controlling 78% of assets and the top three banks owning 60% of the market share.

Key Recommendations

Short Term

• Establish and expand the scope of Ombudsman under AFN's proposed law to cover all banking matters.
• Reduce high fees and charges in the banking system by improving competition and learning from other regulators.
• Require FIAK to play a more relevant role in consumer literacy.
• Introduce a cooling-off period (3–5 working days) for financial contracts with long-term impact, especially mortgages.
• FIAK should develop a Code of Conduct and standard terms, and issue them as soon as possible.
• Improve collaboration between industry, regulators, civil society, and mass media to deliver financial information and consumer literacy.
• Enable online verification of credit bureau information.

Long Term

• AFN should develop a long-term plan to involve industry participants more actively in consumer protection.
• AFN must analyze legal actions against banks to understand the role of the courts in upholding consumer rights.
• AFN should review disclosure, sales practices, affordability tests, and customer handling procedures to protect unsophisticated consumers.
• Enhance AFN's capacity to handle consumer protection through exchange programs and additional resources.
• FIAK should take steps to improve banking practices, including:
  • Implementing standardized rules for internal redressal and complaints mechanisms.
  • Publishing procedures on the banks' websites.
  • Engaging in consumer protection activities and financial literacy programs.
  • Adopting and publishing a voluntary code of conduct.
  • Providing comprehensive information on financial products and services.
  • Establishing permanent working groups or committees on banking, capital markets, insurance, and pensions.
  • Improving the level of skills in the banking industry through a training institute.
• RFCA should shift the responsibility of educating and building consumer confidence from the government to the private sector.
• Conduct impact assessments of training and outreach activities to better align resources with the goal of informed consumers.
• Competition Authority must monitor the banking sector closely and encourage better competition.
• Publish assessments of the banking system and its practices, including fee evaluations.
• Provide state funding to consumer protection associations to enhance their scope, outreach, and sustainability.

Conclusion

The document highlights the need for a more robust and comprehensive consumer protection framework in Kazakhstan, especially in the banking sector. It emphasizes the importance of strengthening institutional capacity, improving transparency, and involving the private sector more actively in consumer education and protection. The new consumer protection law is seen as a positive step, but its implementation and the role of voluntary organizations like FIAK require further development to ensure effective consumer rights protection.