scholarly journals Reshaping Institutional Structure for Financial Consumer Protection

2019 ◽  
pp. 119-128
Author(s):  
Damian Cyman
Keyword(s):  
Financial Market ◽  
Consumer Protection ◽  
Financial Services ◽  
Institutional Structure ◽  
Basic Assumptions ◽  
Twin Peaks ◽  
Supervision Models ◽  
The Stability

The article presents the significance of proper consumer protection for the stability of the financial market. It presents the basic assumptions of such protection and the direction of changes introduced as a result of the crisis of 2007 and the following years. It discusses the change of the consumer protection paradigm from the disclosure obligation to institutional and supervisory protection. It presents the adopted supervision models, including the twin peaks supervision, as well as the objectives that a proper supervision should execute in terms of financial services consumer protection.

PSYCHOLOGICAL ASPECTS OF ORGANIZATION OF FRAUD SCHEMES IN THE FIELD OF THE FINANCIAL MARKET

2021 ◽  
Vol 1 (12) ◽  
pp. 69-77
Author(s):  
Аleksey V. Zverev ◽  
◽  
Marina Yu. Mishina ◽  
Andrey V. Novikov ◽  
◽  
...  
Keyword(s):  
Critical Thinking ◽  
Financial Market ◽  
Financial Services ◽  
Psychological Aspects ◽  
Financial Fraud ◽  
Stressful Situation ◽  
Potential Victim ◽  
The Stability ◽  
The Relationship

This article reflects the peculiarities of the psychological connection between a financial fraudster and his potential victim. The process of forming a stressful situation depending on the type of financial fraud is described, the reasons for its occurrence and the result of implementation associated with a decrease in critical thinking are indicated. The essence is also revealed, including from the perspective of the relationship between the fraudster and the potential victim, and the types of financial fraud and practical examples of their manifestation are considered. The psychological portrait of a financial fraudster and his transformation in connection with the changing preferences of consumers of financial services are described. The role of the Bank of Russia in reducing the activity of financial fraud and ensuring the stability of the financial market is reflected.

Financial consumer protection principles in accordance with the Quran and Sunnah

2019 ◽  
Vol 7 (2) ◽  
pp. 58
Author(s):  
Rusni Hassan ◽  
Nur I’ffah Muhammad Nasir
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Consumer Protection ◽  
Consumer Trust ◽  
Islamic Finance ◽  
Protection Mechanism ◽  
Good Practices ◽  
Finance Industry ◽  
The Stability ◽  
Competitive Economy

Consumer plays an essential role in the economy of a nation. In a competitive economy where the businesses and manufacturers may use exploitative means and unfair trade practices, there is an urgent need to protect the consumers against such malpractices. Financial consumers are of no exception. Reliable consumer protection helps to build consumer trust in financial institutions which subsequently contribute to the stability of the financial market. The Western scholars establish the existing standards and good practices on financial consumer protection based on ethics, however, it is also essential to develop Shariah standards and good practices for the Islamic finance industry because the different elements that exist between the Islamic and conventional finance industry. The purpose of this paper is to study the financial consumer protection mechanism from the Shariah sources of Quran and Sunnah. This paper is conceptual, mainly applying the content analysis approach that explores the works of Islamic scholars related to the concept of consumer protection.

scholarly journals Legal Status of the Financial Ombudsman in the European Union – Risks and Challenges

2021 ◽  
pp. 145-162
Author(s):  
Ewa Derc
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
Financial Stability ◽  
Legal Status ◽  
The Other ◽  
The European Union ◽  
Financing System ◽  
Consumer Rights ◽  
The Stability ◽  
To Receive

This contribution deals with the protection of consumer rights which must be clear and certain. At the same time, it is not possible to protect the important interests of the stability of the financial market and its actors and, at the same time, to protect those who use the services of these actors. After all, the interests of the parties in a contract are not entirely compatible, the client wants to receive the lowest possible price of capital and the borrower the highest possible price. A body that will protect one party will not be independent with regard to the other interest being protected. The idea of all the Financial Ombudsmen created after 2008 is precisely that of protecting one party, the consumer/customer, who, in his or her own way, is the guarantor of the banks' liquidity security. This idea prevails where the consumer of financial services is effectively protected. The Ombudsman is, in a way, a consequence, but also a guarantor of financial stability and the financing system, and not speculation on consumers.

scholarly journals Strategi Promosi Otoritas Jasa Keuangan (OJK) Provinsi Sulawesi Tengah dalam Edukasi dan Perlindungan Konsumen di Kota Palu

2016 ◽  
Vol 13 (2) ◽  
pp. 362
Author(s):  
Ermawati Ermawati ◽  
Irham Pakawaru
Keyword(s):  
Consumer Protection ◽  
Financial Services ◽  
Services Sector ◽  
The Public ◽  
Maximum Effort ◽  
Promotional Strategies ◽  
The Stability ◽  
The Many ◽  
The City ◽  
Central Sulawesi

OJK presence was a turning point to the many cross issues in the financial services sector which includes measures of moral hazard, financial services consumer protection is not optimal, and the disruption of the stability of the financial system. OJK as an independent institution requires maximum effort promotions on tasks and functions to the public. This research uses descriptive qualitative research to explore strategies of promotion done by OJK of Central Sulawesi Province. The results of this study indicate that, promotion strategies undertaken by the OJK Central Sulawesi province are through is through ads in print and electronic media. Namely periodical published in Radar and Mercusuar newsletters, Billboards installed periodical in the streets of Mayor in the city of Palu, Cinema advertising, Published in  XXI Palu Grand Mall and Radio advertising: RRI. While the implications of the implementation of promotional strategies that people are starting to know the whereabouts of the OJK Central Sulawesi province, although not yet familiar with the tasks and functions in educating and providing consumer protection

scholarly journals Types of Non-Banking Financial Institutions

2021 ◽  
Vol 16 (11) ◽  
pp. 32-41
Author(s):  
V. V. Chistyukhin
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
Legal Regulation ◽  
Professional Services ◽  
The Other ◽  
Research Issue ◽  
The Stability ◽  
The One ◽  
Definition Of

The paper is devoted to the study of the types of non-banking financial organizations. A classification  is an integral part of scientific knowledge, which allows us to visually demonstrate the inner content of the  category under consideration and identify the features of each element of the analyzed concept. The research  issue of the paper is predetermined by the lack of legal division between non-banking financial organizations.  The classification given in the paper, according to the author, on the one hand, most fully reflects the range of  financial services provided by non-banking financial institutions, and, on the other hand, allows differentiating the roles that separate non-banking financial institutions play in the organization and functioning of the financial  market. The latter is important for determining the specifics of legal regulation of different groups of non-banking  financial organizations, since each of them has a different meaning for ensuring the stability and sustainability of  the financial market. The paper reflects the author’s position concerning the definition of the concept of "non-banking financial organizations" and the place of individuals providing professional services in the financial market  in the system of financial organizations.

scholarly journals Modern directions of development of financial technologies in the banking sector of Ukraine

2021 ◽  
pp. 9-13
Author(s):  
Olha RATS ◽  
Anzhelika ALFIMOVA
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
Structural Changes ◽  
Banking Sector ◽  
Consumer Confidence ◽  
Current Trends ◽  
Use Of The Internet ◽  
The Stability ◽  
Financial Technology

Introduction. One of the factors of structural changes in the financial market of Ukraine is the growing use of the Internet and mobile devices to provide financial services. At present, it can be seen that radical changes in the field of technology have affected not only the information sphere, but also the economic one. The modern technological revolution has significantly affected the infrastructure of the banking sector, which is associated with increased automation in the work of financial institutions and greater customer focus. This encourages banks to constantly improve, introduce new products and provide services to their customers with greater speed, quality and reliability. The purpose of the paper is to identify and study current trends and directions of development of financial technologies in the banking sector of Ukraine. Results. The article reveals the economic essence of the concept of “financial technology”. Modern tendencies of fintech development in Ukraine are analyzed. Successful examples of the use of innovative financial technologies in the domestic banking sector in recent years are presented. Possible areas of partnership between fintech companies and traditional banks have been identified. Conclusion. When formulating their own strategy, banks should consider the innovative vector of development as the most important way to ensure the stability of their operation, economic growth and competitiveness, as the effectiveness of their activities depends on the ability to meet the needs of consumers. Therefore, banks need to implement advanced financial technologies, as well as improve ways to provide them to their customers. Equally important is the cooperation of banks with fintech companies, which will promote the development of innovation and maintain consumer confidence in both parties.

scholarly journals Prudential exception in the case “Argentina-Financial Services”

2021 ◽  
pp. 1-11
Author(s):  
Dilyara Rustemovna Gatina
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
Dispute Settlement ◽  
National Level ◽  
Normal Activity ◽  
Risk Prevention ◽  
The World ◽  
The Government ◽  
The Stability ◽  
Shed Light

This article discusses the conclusions of the World Trade Organization Dispute Settlement Body (WTO DSB) on the case “Argentina – Financial Services” pertaining to interpretation of the Paragraph 2 (a) of the Annex on Financial Services to the General Agreement on Trade in Services (GATS), which contains a prudential exception that allows the countries, regardless of their obligations in accordance with GATS, taking measures on the national level that are aimed at maintaining stability in the domestic financial market. The need for studying the approaches applied due to interpretation of this norm, is substantiated by the ambiguous wording of the Paragraph 2 (a) of the Annex on Financial Services, which raises questions on its proper application. The author attempts to give assessment to the decisions of the Arbitration Group on the interpretation of prudential exception, as well as shed light on the instances of its application. This article is the first work within the Russian legal science dedicated to examination of the peculiarities of application of prudential exception. Having analyzed the corresponding provision of GATS, as well as the decisions of the Arbitration Group on the case “Argentina – Financial Services”, the author concludes that virtually any measure introduced by the government on the national level, which serves the purpose of risk prevention that may create a threat to the stability and integrity of the financial market of the country and normal activity of the participant of the financial services market, can fall under Paragraph 2 (a). At the same time, the key and practically the only obstacle for abuse such norm consists in the need to adhere to the principle of good faith in the context of implementation of the corresponding prudential measures.

scholarly journals Financial Consumers and Applicable Provisions a European and Italian Perspective

2017 ◽  
Vol 2 (No. 1 Apr 2017) ◽  
pp. 17-42
Author(s):  
Vincenzo Senatore
Keyword(s):  
Crisis Management ◽  
Consumer Protection ◽  
Financial Services ◽  
Global Financial Crisis ◽  
Conflicts Of Interest ◽  
The European Union ◽  
Management Procedures ◽  
The Stability ◽  
The Global Financial Crisis ◽  
Bank System

In Europe, general legislation requires protection of the economic interests of consumers. This includes, for instance, the consumer protection from financial services, misleading advertising and unfair contract terms. However, only after the global financial crisis, the European Union (EU) has become aware of the lack of transparency, poor handling of conflicts of interest, over-indebtedness, and low awareness of risks of the consumers in dealing with financial services. This paper aims to investigate the financial knowledge and overconfidence in Europe, and to provide an overview of consumer protection policy in EU. Here, it will be analyzed the EU regulatory framework, whose aim is to ensure the stability of the financial markets and to establish specific and common rules for banks and investments companies among the Member States. Furthermore, it deals with protections of financial consumers in the Italian legislation and within a European context. It concludes providing the Italian financial system as best example of crisis management and resolution, by providing out-of-court settlements, collective redress and crisis management procedures, with the aims to establish a systemic stability and financial consumers’ confidence in the bank system.

The Systemic Effects of Prudential Regulation Toughening:The Results of a Stress-test for Russian Banks

2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Stress Test ◽  
Credit Market ◽  
Capital Adequacy ◽  
Government Support ◽  
Government Ownership ◽  
Prudential Regulation ◽  
The Government ◽  
The Stability

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.

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