FCMC: financial literacy of population grows stronger in Latvia
Financial and Capital Market Commission (FCMC) in cooperation with its partners has summed up results of the regular year regarding implementation of the National Strategy for Financial Literacy in Latvia 2014-2020. The data obtained demonstrates progress towards achievement of strategic objectives.
Analysis of the main indicators showed positive developments in the improvement of financial literacy of the population in Latvia also in 2015: total household savings continued to grow, though not as fast as before amounting to 8.6 billion euro, more than 9 thousand new endowment insurance contracts were entered into, the membership growth rate of private pension schemes saw the steepest rise over five years and risk insurance premiums written per capita reached 144 euro (134 euro before). Further household development and sustainability were based on the nearly optimal (0.9) balance in the loan-to-deposit ratio of 1.0, or 99% in terms of money, total loans to household deposits (100%), as well as growing GDP per capita, totalling 12 321 euro (compared to 12 051 euro before).
Head of FCMC vortal CLIENT SCHOOL Ieva Upleja, “Such regular data analysis gives us compelling evidence that financial literacy of population in Latvia is gaining foothold and growing stronger. In practical implementation, because of better understanding of the nature of financial services, informed choice of services takes place and the level of confidence in service providers has increased to 52% (compared to 50% before). Residents become more active in insuring their risks with a growth rate close to the maximum as predicted before. The amount of funds invested in life insurance grows as well. Overall, habits contributing to our financial sustainability – accumulation and long-term planning – reinforce. Most likely, it will become visible also in the first datasheet on the financial literacy level in different countries performed by the OECD INFE and released by the end of the year. We have submitted data for the second survey of financial literacy in Latvia (2015) and first indications show that the financial knowledge of Latvia’s population is above the average or among the first six countries of 17 covered by the study.”
In 2014, the FCMC became a regular member of the OECD working group International Network for Financial Education (INFE) representing Latvia as a national coordinator for financial literacy issues and ensuring data collection on Latvia’s progress and submission above information to the OECD. In 2015, Latvia’s financial literacy experience in strategic management along with data from other developed countries was included in the OECD/INFE Policy Handbook National Strategies for Financial Education, released at the end of the year.
Results of the implementation of financial literacy strategic objectives are presented in the info-graphics on the FCMC website at: http://www.fktk.lv/en/publications/press-releases/492-infographics/5802-infographics-financial-literacy-in-latvia-2015.html
Implementation of the National Strategy for Financial Literacy in Latvia 2014-2020 has been carried out acting in concert with strategic partners that have entered into the Memorandum: FCMC, Ministry of Education and Science, National Centre for Education, BA School of Business and Finance, Consumer Rights Protection Centre, Association of Commercial Banks of Latvia and Latvian Insurers Association, as well as other partners involved: the Bank of Latvia, Ministry of Finance, Ministry of Welfare and State Social Insurance Agency, stock exchange Nasdaq Riga, Riga Technical University, Latvia University of Agriculture, University of Economics and Culture, Junior Achievement Latvia.
Head of Working Group
for Implementation of National Financial Literacy Strategy
Chief Public Relations Specialist
FCMC Communications Division
Telephone:+371 67774807; email: email@example.com