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FinCoNet Publishes Report on Responsible Lending

 


15 July 2014 - FinCoNet, the International Financial Consumer Protection Organisation, today published its report outlining key findings and good practices on Responsible Lending – a Review of Supervisory Tools for Consumer Lending Practices.


FinCoNet’s report is based on an international survey of 20 jurisdictions and representative bodies, and identifies practices and initiatives to promote responsible lending in the consumer credit market.   


Established in 2013, FinCoNet is a non-profit organisation made up primarily of regulators and public entities which have a financial market conduct and financial consumer protection supervision mandate.  It was established in response to the growing focus in financial consumer protection worldwide, and the need for better coordination among supervisory bodies responsible for the oversight of the various national financial consumer protection regimes. Going forward the organisation will continue to focus on consumer credit and banking issues, aiming to strengthen consumer confidence while reducing systemic risk.   


Bernard Sheridan, Chair of FinCoNet and Director of Consumer Protection with the Central Bank of Ireland said  “Supervisory authorities can play a very important role in protecting the interests of consumers, particularly in the area of responsible lending. While responsible lending obligations and approaches have developed significantly over the past ten years, nonetheless, the global financial crisis has drawn attention to the importance of financial consumer protection, particularly responsible lending, as a component of a stable financial system.


We would encourage all supervisory authorities to consider the findings of this report and application of the good practice observations. FinCoNet will continue to collaborate with international organisations and provide supervisory authorities with a global platform to share best practices, experiences and lessons while promoting fair and transparent market practice.   FinCoNet is open to new members and I would encourage supervisory authorities to consider joining the organisation by contacting the Chair’s office at finconet@central bank.ie.” 


Download the report Responsible Lending – a Review of Supervisory Tools for Consumer Lending Practices (pdf)

Contact the FinCoNet Secretariat finconet@central bank.ie

 

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