2012年-世界发展银行全球_Mongolia_Diagnostic_Review_of_Consumer_Protection_and_Financial_Literacy___Volume_2_Comparison_with_Good_Practices_98页_1mb

Mongolia: Diagnostic Review of Consumer Protection and Financial Literacy (Volume II – Comparison with Good Practices)

Core Content

This document provides a diagnostic review of consumer protection and financial literacy in Mongolia, with a focus on the banking, securities, and insurance sectors. It evaluates the current legal and institutional frameworks against international good practices and offers recommendations for improvement.

Main Sectors and Overview

Banking Sector

• Economic Context: Mongolia has experienced rapid economic growth, largely driven by mineral investments. The GDP growth rate was 6.4% in 2010 and is projected to be 16% on average from 2011-2013, with a significant rebound in commodity prices and increased capital inflows.
• Financial System: The banking sector accounts for 96% of the total assets in the financial system. It is highly concentrated, with the top 3 banks holding about 70% of the market share and the top 5 banks over 86%.
• Credit Expansion: Bank lending to households and corporates has grown rapidly. In 2011, credit increased by 72% year-on-year (YoY), with household loans growing by 80% YoY and corporate loans by over 70% YoY.
• Branch Penetration: Mongolia has one of the highest bank branch penetration rates globally (54 per 100,000 adults), but the geographical coverage is low due to the vast territory and sparse population (0.67 branches per 1,000 km²).
• Loan and Deposit Penetration: Loan accounts are at 260 per 1,000 adults, and deposit accounts are at over 2,000 per 1,000 adults, indicating high access to financial services.

Comparison with Good Practices

Consumer Protection Institutions

• Good Practice A.1: A clear consumer protection regime should be established, with dedicated institutions to implement, oversee, and enforce consumer protection rules. These institutions should be adequately funded, transparent, and have well-defined responsibilities.
• Current Situation:
  • The Consumer Protection Law (CP Law) and Banking Law provide some consumer protection, but the framework is fragmented and lacks clarity.
  • The Agency for Fair Competition and Consumer Rights (AFCCR) has theoretical jurisdiction over consumer protection but is under-resourced and underfunded.
  • The Bank of Mongolia (BoM) has no dedicated unit for financial consumer protection and is responsible for supervising banking activities with a narrow focus on financial stability.
  • Overlap of Responsibilities: The AFCCR and BoM have overlapping roles in consumer protection, leading to potential conflicts and inefficiencies.
  • NGOs: The Mongolian Consumers Association (MCA) is not effectively involved in consumer protection due to lack of resources and specialized training.

Code of Conduct for Banks

• Good Practice A.2: A principles-based code of conduct should be developed in consultation with financial supervisory agencies and consumer associations. It should be publicly available and include voluntary codes for facilitating account switching and standardizing terminology.
• Current Situation:
  • There is no formal code of conduct for banks that is adhered to by all institutions.
  • The Mongolian Bankers Association (MBA) developed a voluntary Code of Conduct (CCB) in 2010, but it is not formally binding.

Key Recommendations

Institutional Arrangements

• Short-Term: The BoM should be empowered to establish a dedicated financial consumer protection unit to ensure compliance with legal requirements and enforcement of market conduct regulations.
• Medium-Term:
  • Clarify the responsibilities of the BoM, Financial Regulatory Commission (FRC), and AFCCR through comprehensive Memoranda of Understanding (MoUs).
  • Consider transferring all financial consumer protection regulation and supervision to existing financial sector regulators to avoid duplication.
• Long-Term:
  • Strengthen the capacity of consumer associations with support from the government, BoM, and FRC.
  • Involve consumer associations in consultative processes on financial consumer protection policies and regulations.

Legal Framework

• Medium-Term:
  • Strengthen and clarify the legal framework for financial consumer protection.
  • Amend the Consumer Protection Law (CP Law) and Law on Advertising to exclude the financial sector to ensure focused regulation.
  • Amend the Competition Law to exclude financial institutions from its provisions on advertisement.
  • Revise the Banking Law to clearly assign the AFCCR as the authority for enforcing provisions on unfair competition and market dominance.

Conclusion

Mongolia's current legal and institutional framework for consumer protection and financial literacy is underdeveloped and fragmented. While the country has made progress in financial inclusion, the lack of coordination, under-resourced institutions, and unclear legal provisions hinder effective consumer protection. Strengthening the BoM's role, clarifying responsibilities among institutions, and involving NGOs and consumer associations are critical steps toward improving the financial consumer protection regime.