Rwanda Diagnostic Review of Consumer Protection and Financial Literacy

Abstract

Although the Parliament of Rwanda has
 passed an impressive array of financial sector laws since
 2008, the laws relevant to financial consumer protection are
 very limited and in some cases overlapping. Consumer
 protection in Rwandan banking, microfinance, and insurance
 sectors is fragmented because of insufficiently defined
 roles and responsibilities among institutions and unclear
 enforcement capacity. While there are some strong provisions
 in some areas such as electronic money transfer, electronic
 transmission, credit information, and market conduct
 regulation in the insurance industry, many other areas are
 lagging. Rwandan authorities recognize that a sound
 financial consumer protection framework is fundamental to
 improving usage and quality of financial services, access to
 them, and overall deepening of the financial sector. This
 World Bank diagnostic review was requested by the National
 Bank of Rwanda (BNR) in November 2012. Modules on banking
 and microfinance sectors were developed based on publicly
 available information and data during the World Bank mission
 in Rwanda, and the review of the insurance sector was
 conducted through a desk review using the data obtained from
 BNR data requests and questionnaires, and the analysis is
 therefore constrained by it. Volume I of the review
 summarizes its key findings and recommendations, and volume
 II provides a detailed assessment against the World Bank’s
 good practices on financial consumer protection.