Strengthening the Protection of Financial Consumers in Mongolia’s Banking Sector

This working paper discusses the results of a critical review of the existing financial consumer protection framework in Mongolia.

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The assessment includes recommendations for Mongolian policy makers on ways to improve the regulatory framework and the supervisory oversight of financial consumer protection and the role that the Bank of Mongolia could play. The analyses focuses on the banking industry in Mongolia, which currently accounts for over 90% of the entire financial services industry. However, a significant number of the proposed recommendations may be equally applicable to other financial markets, such as insurance and investment and securities services, and several unregulated services.

Contents

• Introduction
• The Mongolian Banking Industry
• The Institutional and Legal Framework for Consumer Protection
• Recommendations for Strengthening Financial Consumer Protection
• Information Disclosure and Rules on Unfair Sales Practices
• Recommendations for Stronger Disclosure Requirements and Fair Market Conduct
• Handling and Maintenance of Customer Accounts
• Recommendations on the Handling and Maintenance of Customer Accounts
• Privacy and Data Protection for Banking Services
• Recommendations for Strengthening Privacy and Personal Data Protection in Banking and Financial Services
• Alternative Dispute Resolution
• Recommendations Concerning the Resolution of Disputes and the Establishment of a Financial Ombudsman
• The Interface between Competition and Financial Consumer Protection
• Recommendations on the Relationship between Competition Policy and Financial Consumer Protection
• Conclusions