FCMC: Residents gradually change their financial habits

11.06.2015
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Riga, 11.06.2015

Press Release

FCMC: Residents gradually change their financial habits 

Financial and Capital Market Commission (FCMC) together with collaboration partners have summarized annual results regarding implementation of the National Strategy for Financial Literacy in Latvia 2014-2020. The first year shows good progress in performance of almost all indicators. 

In 2014, like in other developed countries, involvement of Latvian residents in using the basic financial services has been traditionally high: 94% of residents have bank accounts, moreover, more customers make use of electronic solutions: 70% of total residents already use internet banking services (in 2013 – 65%), 11 800 new endowment insurance contracts entered into, nearly 15 000 more residents joined private pension funds, as well as confidence in the financial service providers has increased reaching 50% on the average (in 2013 – 44%).

FCMC Chairman Kristaps Zakulis: “This year we can observe several positive trends in conformity with the three defined strategic goals: tradition of planning and making savings, integrity of the financial sector and financial sustainability of households. It is obvious that residents use more diverse and modern services, more precisely define a plan for the present day, more contemplate making savings for future and act accordingly to have them. The households’ borrowing/savings rate has become more proportionate in Latvia, as loans-to-deposits rate was 110/100 at the end of 2014. These all are encouraging signals. Thus the partners must continue efforts as regards improvements in the general education content, support for further education of teachers, provision of consultations and training tools on the internet for everyone.”

In accordance with the performance of financial literacy indicators the number of households that regularly plan their budget has increased (58%), moreover, previously residents planned their household budget from memory but now they more often record the budget figures in writing or in their own established electronic system. In 2014, total household savings grew by nearly one billion euro and showed a 8.1 billion euro increase, while an increase in risk insurance premiums written by residents was higher than the planned maximum of +9.8%, and reached 134 euro per capita, and it was more than in the life insurance so far, the share of life insurance in the insurance market overall has increased up to 24%. Please visit the FCMC’s website to see the performance of financial literacy strategic objectives: Financial Literacy of Latvia’s Residents:  2014 at: http://www.fktk.lv/attachments/article/5159/INFOGRAPHICS_NacStrategy_Implem_results_2014.pdf  

Implementation of the National Strategy for Financial Literacy in Latvia 2014-2020 has been carried out acting in concert with partners – FCMC, the Bank of Latvia, 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. 

Further information:

Ieva Upleja

Head of Working Group for Implementation of National Financial Literacy Strategy

Chief Public Relations Specialist 

Communications Division

Financial and Capital Market Commission 

Telephone: +371 67774807; email: ieva.upleja@fktk.lv

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