Over the last decade, consumer credit inthe Russian Federation has expanded from almost nothing to9.2 percent of GDP in 2008, at 84 percent average annualgrowth in 2003-2008 year for five years. Yet, the increaseshave been uneven throughout the Russian population: morethan 40 percent are still financially excluded and only 16percent have bank accounts. A 2008 survey found that Russianconsumers had low levels of financial literacy and lackedawareness of their rights as financial consumers.Three-quarters of the survey's respondents said theywould like to receive financial education in order toprotect themselves financially and plan for the future.Similar trends of the booming credit markets amidsignificant gaps in financial literacy around the world havecontributed to the global financial crisis of 2008 andemphasized the importance of consumer protection andfinancial education programs for the long-term health of thefinancial sector. Responding to a request from Russianauthorities, the World Bank conducted a diagnostic review tohelp Russia design an effective consumer protection andfinancial literacy framework. This review, presented in twovolumes, outlines the key findings and recommendations inVolume I, and analyzes the existing rules and practices inRussia, in comparison with international good practices – inVolume II. Banking, non-bank credit, securities, insurance,private pensions, and credit reporting segments are covered.
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