Financial inclusion from the perspective of basic banking services and consumer credit: a comparative study of law and regulation in the United Kingdom and China

Zhang, Meihui (2015) Financial inclusion from the perspective of basic banking services and consumer credit: a comparative study of law and regulation in the United Kingdom and China. PhD thesis, University of Glasgow.

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The purpose of this thesis is to study the role and effectiveness of law and regulation in relation to the problem of financial exclusion. The research was conducted through a comparative study of the United Kingdom (hereinafter ‘UK’) and China, and focuses on whether law and regulation could fulfil a role in facilitating vulnerable consumer’s access to basic banking services.

The thesis begins with an overview of the theory of financial exclusion and provides definitions of consumer vulnerability. It reviews the exclusion conditions in both countries in respect of basic payment services and consumer credit, and analyses the reasons for, and negative consequences of, being excluded from such services. The thesis then demonstrates the theory of equal opportunity, and the role of law and regulation in the context of facilitating financial inclusion, followed by an overview of credit regulation from a historical perspective.

The main content of this thesis is divided into three major parts. The experiences of the UK, China and the European Union (hereinafter ‘EU’) are analysed, and it is found that the process of financial inclusion could be facilitated by way of regulation. First, commercial banks are at the centre of the mainstream market. However, their role in financial inclusion largely focuses on payment services. Whether vulnerable customers’ access to payment services could be facilitated by regulations is the main content of chapter two. This thesis suggests that without enough incentive, banks can be less motivated in this progress.

To accelerate financial inclusion in respect of consumer credit, alternative credit facilities on the consumer market should be supported by law and regulation, available funding should be made available and regulatory barriers be removed. After a comprehensive review of their legal and regulatory environment, the present research suggests that the UK has generally made good progress in this regard, while China is still in the nascent stage of development. The weakness in a ‘one-size-fits-all’ model is clarified through the analysis.

Subprime lenders are also essential in the market because they fill a gap. Standards that regulate subprime lenders should be equal for all lenders in the market, but also give consumers in the high-risk subprime lending sector. In the case of detriment, the regulatory regime would be able to provide recovery or simple and easy dispute resolution. This thesis argues for both ex ante and ex post consumer protection.

Item Type: Thesis (PhD)
Qualification Level: Doctoral
Keywords: basic banking services, consumer credit, financial exclusion, regulation, subprime lending
Subjects: K Law > K Law (General)
Colleges/Schools: College of Social Sciences > School of Law
Supervisor's Name: MacNeil, Professor Iain. G
Date of Award: 2015
Depositing User: meihui zhang
Unique ID: glathesis:2015-6643
Copyright: Copyright of this thesis is held by the author.
Date Deposited: 02 Sep 2015 11:43
Last Modified: 10 Sep 2015 13:44

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