Improving Protection in Financial Services for Russian Consumers
Over the last decade, consumer credit in the Russian Federation has expanded from almost nothing to 9.2 percent of Gross Domestic Product (GDP) in 2008. This is an average increase of 84 percent a year for five years. Recent developments in financi...
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/12/11677144/improving-protection-financial-services-russian-consumers http://hdl.handle.net/10986/10221 |
| Summary: | Over the last decade, consumer credit in
the Russian Federation has expanded from almost nothing to
9.2 percent of Gross Domestic Product (GDP) in 2008. This is
an average increase of 84 percent a year for five years.
Recent developments in financial markets have highlighted
the need for consumer protection and financial literacy for
the long-term health of the financial sector. The rapid
growth of household lending has been accompanied by an
increase in the number of households that have difficulty in
understanding the risks and obligations that they assume, or
the full range of choices available. In the United States
mortgage markets for instance, complex financial contracts
were sold to borrowers, some of whom had weak credit
histories. The consequences were disastrous, and highlight
the importance of consumer protection and financial
education to prevent other similar events. |
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