Financial Inclusion and the Linkages to Financial Stability, Integrity, and Consumer Protection: Insights from the Russia Experience

This paper studies linkages and mutual influences of measures to address financial inclusion and financial consumer protection in the Russian Federation. In particular, it explores the linkages among financial inclusion, stability, integrity, and protection, collectively referred to as the I-SIP objectives. For the assessment, the paper analyzes five different policy interventions in Russia: the law on credit cooperation, the law on microfinance activity and microfinance organizations, the law on consumer credit, the legal framework for electronic money operators, and the legal framework for mobile network operators. It also discusses observed effects of the five laws on the I-SIP objectives and provides suggestions for further development of the methodology. The paper covers the following sections in detail:

• Discussion on the I-SIP methodology and analysis with a focus on developing and refining the methodology for the Russian context;
• Overview of the Russian federation’s commitment to financial inclusion and the status of financial inclusion in Russia;
• Analysis of the five policy interventions with a focus on linkages identified and managed, observed effects on I-SIP objectives, and learnings for managing linkages and optimizing results;
• Proposals for further development and refinement of the I-SIP methodology.