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Financial Consumer Protection and the Global Financial Crisis

Author

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  • Melecky, Martin
  • Rutledge, Sue

Abstract

This paper discusses the role and design of financial consumer protection (FCP), weaknesses of current FCP frameworks in light of the recent global financial crisis, policy responses to the crisis, and policy issues in FCP that remain to be addressed. The failures of financial consumer protection have been one of the detonators and amplifiers in the crisis. Policy responses during the crises have focused mainly on enhanced disclosure of pre-contractual and contractual terms and conditions of financial products, their professional and ethical distribution, and debt counseling and education programs for consumers. Most recently, more attention has been paid to the institutional design for financial consumer protection, including regulation, supervision and enforcement and access to financial education. This has been advanced by thinking about the need for a sound and safe design of future financial architecture, including benchmarks for FCP worldwide.

Suggested Citation

  • Melecky, Martin & Rutledge, Sue, 2011. "Financial Consumer Protection and the Global Financial Crisis," MPRA Paper 28201, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28201
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    File URL: https://mpra.ub.uni-muenchen.de/28201/1/MPRA_paper_28201.pdf
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    References listed on IDEAS

    as
    1. Christopher L. Foote & Kristopher Gerardi & Lorenz Goette & Paul S. Willen, 2008. "Subprime facts: what (we think) we know about the subprime crisis and what we don’t," Public Policy Discussion Paper 08-2, Federal Reserve Bank of Boston.
    2. repec:fip:fedgsq:y:2009:x:13 is not listed on IDEAS
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    Cited by:

    1. Marimuthu SELVAKUMAR & Veluchamy SATHYALAKSHMI, 2015. "Financial consumer protection and customer satisfaction. A relationship study by using factor analysis and discriminant analysis," EuroEconomica, Danubius University of Galati, issue 2(34), pages 71-94, November.

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    More about this item

    Keywords

    Financial Consumer Protection; Global Financial Crisis; Business Conduct Regulation and Supervision; Financial Market Integrity;
    All these keywords.

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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