2011年-世界发展银行全球_Bosnia_and_Herzegovina_Diagnostic_Review_of_Consumer_Protection_and_Financial_Literacy_in_Banking_Services___Volume_2_Comparison_with_Good_Practices_60页_765kb

Summary of Consumer Protection and Financial Literacy in Banking Services in Bosnia and Herzegovina

Core Content

This document provides a diagnostic review of consumer protection and financial literacy in the banking sector of Bosnia and Herzegovina (BiH), with a focus on comparing the current practices with good practices in Europe. It outlines the structure of the financial and banking sectors, the legal framework in place, and the institutional arrangements for consumer protection.

Overview of the BiH Financial Sector

• Dominance of Banking Sector: The banking sector is the largest component of BiH's financial system, accounting for over 80% of total financial sector assets by the end of 2010.
• Growth Trends:
  • Banking sector assets grew by 28% in 2006 and 34% in 2007, but slowed significantly to 6% in 2008.
  • In 2009, the sector experienced a 1% decline, continuing the trend of reduced growth.
• Access to Banking Services:
  • Only about 40% of BiH adults had a bank deposit account as of recent estimates, one of the lowest rates in the region.
  • The number of bank deposit accounts per thousand adults and the value of deposits as a percentage of GDP are lower than in neighboring countries like Croatia, Slovenia, and the Czech Republic.
• Credit Reporting System:
  • The public credit registry is expected to cover 35% of the adult population by 2012.
  • Private credit bureau coverage is projected to decline from 64% in 2010 to 40% in 2012.
  • Despite this, BiH's credit reporting system is above the European average, but still lags behind Croatia and the Czech Republic.

Overview of the BiH Banking Sector

• Sector Size: The banking sector's size relative to GDP was similar to neighboring countries, reaching nearly 60% in 2010.
• Ownership Structure:
  • The sector is mostly foreign-owned, with 27 out of 28 banks being foreign.
  • Austrian investors account for over 60% of foreign capital in the banking system in 2010.
• Credit Portfolio:
  • Household credit constitutes a large portion of the banking sector's portfolio.
  • Long-term lending to households made up over 40% of the growth in the banking credit portfolio over the past six years.
  • Short to medium-term credit to the household sector grew by more than 50% during the same period.
• Loan Maturity:
  • Over 40% of household loans in BiH were for 10 years or more.
  • The financial crisis caused a 10% drop in total loans from 2008 to 2009, which remained stable in 2010.

Legal Framework for Consumer Protection

• State-level Laws:
  • Consumer Protection Act (2006): Establishes the Consumer Council and the Consumer Ombudsman.
  • Law on Competition (2005): Addresses non-competitive conditions and monopolistic behavior.
  • Criminal Code and Law on Obligations: Provide legal basis for consumer protection.
  • Law on Deposit Insurance: Ensures deposit protection in member banks.
  • Law on the Protection of Personal Data: Regulates data handling in the financial sector.
• Entity-level Laws:
  • Federation of Bosnia and Herzegovina (FBiH):
    • Law on Banks, Banking Agency, and related regulations.
    • Decisions on interest rate calculation, credit risk management, and consumer complaint procedures.
  • Republika Srpska (RS):
    • Law on Banks and Banking Agency.
    • Regulations on credit risk management, anti-money laundering, and consumer complaint handling.
    • Establishment of a Banking System Ombudsman in RS.

Institutional Arrangements

• Consumer Council:
  • Established by the Consumer Protection Act (2006).
  • Composed of 15 members from various institutions.
  • Focuses on broader consumer protection policies rather than specific banking issues.
• Consumer Ombudsman:
  • An independent institution under the Consumer Protection Act.
  • Operates in Mostar with a full-time staff of four.
  • Issues guidelines and recommendations on unfair practices in banking.
  • Has the authority to resolve consumer disputes and recommend contractual terms.
• Central Bank of BiH (CBBiH):
  • Established in 1997, responsible for monetary stability and coordinating banking supervision.
  • Created the Central Registry of Credits in 2006 to collect and provide access to credit information.
  • Works with Banking Agencies in both Entities to enhance cooperation and data exchange.
• Deposit Insurance Agency:
  • Set up in 2002 to protect deposits and ensure financial stability.
  • Has 25 member banks and is based in Banja Luka with branches in Sarajevo.
• Market Surveillance:
  • State-level Market Surveillance Agency coordinates overall activities.
  • Inspection Authorities in both Entities conduct direct inspections and on-site checks.

Key Recommendations

• Strengthen the legal framework for consumer protection in the banking sector.
• Enhance the capacity of the Consumer Ombudsman and related institutions to address banking-specific issues.
• Improve the efficiency and cost-effectiveness of contract enforcement mechanisms.
• Expand the coverage and reliability of credit reporting systems.
• Increase financial literacy among the population to improve access and usage of formal financial services.
• Ensure better coordination between the Central Bank and Banking Agencies to improve supervision and data sharing.

Good Practices: Banking Sector

• Efficiency of Contract Enforcement:
  • BiH ranks 97th in terms of investor protection policies and 125th in the number of days required to enforce contracts.
  • Enforcement costs are among the highest in the region, reaching up to 40% of the claim amount.
• Comparison with Other Countries:
  • BiH's credit reporting system coverage is above the European average but still lags behind Croatia and the Czech Republic.
  • The efficiency of contract enforcement in BiH is lower than in Central and Eastern Europe, with an average cost of 40.4% compared to 19% region-wide.

Conclusion

BiH's banking sector is dominated by foreign institutions and has seen significant growth in household credit, but it faces challenges in consumer protection and financial literacy. The legal and institutional framework is fragmented, with no centralized authority for banking consumer protection. There is a need for stronger regulatory mechanisms, improved contract enforcement efficiency, and increased financial education to support a more stable and consumer-friendly financial environment.