The role of central banks in the protection of the banking clients: A law and regulation perspective

Customer protection remains a challenge, even in highly developed democracies, reflecting the overall socio-economic development of a region. This paper focuses on the protection of customer rights in the banking sector within selected Western Balkan countries, emphasizing the roles and legal competencies of central banks. The research aims to identify best practices and areas for improvement, particularly in Kosovo. Using qualitative research methodology, the study analyzes primary data from central banks and secondary data from various sources, comparing regulatory practices and the number of complaints across the selected countries. The findings suggest that while strides have been made in customer protection, further regulatory improvements and financial literacy initiatives are needed. The paper concludes by highlighting the importance of enhanced regulatory frameworks and customer education to ensure financial stability and protect customer rights, making a significant contribution to the ongoing discourse on consumer protection in the financial sector.