Suomen Pankki

Bank of Finland to draw up national plan to improve financial literacy

Share

In recent years, household financial problems, payment defaults and indebtedness have increased in Finland. This has raised concern about whether Finns have sufficient skills to make economically sustainable decisions. In accordance with the Government Programme, several ministries will launch measures to reduce over-indebtedness and improve the ability of citizens to manage their personal finances. Furthermore, the Bank of Finland is now launching a project for the coordination of activities to improve national financial literacy.

When it comes to the overall picture of the national economy, household debt in relation to income is higher than ever before. New forms of loans, operators outside the traditional banking sector and new practices have entered the market, which has increased the availability and attractiveness of loans.

"This development creates risks for individuals and the national economy alike. We need both regulation and financial literacy to solve the problems. In fact, a number of measures are already under way at the Ministry of Justice to address the problems related to over-indebtedness,” says Minister of Justice Anna-Maja Henriksson.

When compared to many other countries, the financial literacy of Finns is at a relatively high level. However, digitalisation and the financial market that operates on a global scale have created new services and changed the way we act as consumers and banking customers. “It is important that people understand how the new financial services work and what risks they involve. In the digital era, we must constantly develop our financial literacy,” says Olli Rehn, Governor of the Bank of Finland.

In additional to the authorities, dozens of private and third sector actors carry out valuable work to improve citizens’ financial literacy in Finland. However, the activities of various actors that aim to support the management of finances should be coordinated and monitored more effectively. The Bank of Finland, the Ministry of Justice and other key authorities have agreed that the Bank of Finland will assume responsibility for drawing up a national strategy for the management of personal finances and for coordinating the related activities at the initial stage.

“Financial literacy is a key civic skill. By setting common objectives and coordinating the activities better, we can improve the financial literacy of Finns more efficiently. The Bank of Finland is now taking the lead in the strategy work on financial literacy,” Governor Olli Rehn emphasises. 

Improved coordination would make it possible to obtain up-to-date information on the activities and projects of different parties. This information could then be used for clarifying the cooperation procedures and defining common practices. The aim of the coordination work is to identify best practices and to ensure, through interaction, that they are utilised in a larger scale.

“It is important that each of us has sufficient knowledge of how to manage our personal finances. I am very pleased that the Bank of Finland has taken charge of this task. The Government is strongly committed to combating over-indebtedness,” Minister of Justice Anna-Maja Henriksson says.

Inquiries:

Niklas Mannfolk, Special Adviser to Minister Henriksson, tel. +358 50 306 3990, firstname.lastname@om.fi,

Sanna Helesuo, Senior Specialist, Ministry of Justice, tel. +358 295 150 005, firstname.lastname@om.fi,

Marja Nykänen, Deputy Governor of the Bank of Finland, tel. +358 9 183 2007,

Jenni Hellström, Head of Communications, Bank of Finland, tel. +358 9 183 2622.

Governor Olli Rehn: Speech 29 January 2020 (pdf, only in Finnish)

Frequently asked questions on the coordination of activities to improve national financial literacy

 
 
 

Keywords

Images

Links

About Suomen Pankki

Suomen Pankki
Suomen Pankki
Snellmaninaukio, PL 160
00101 HELSINKI

09 1831http://www.bof.fi

The Bank of Finland is the national monetary authority and central bank of Finland. At the same time, it is also a part of the Eurosystem, which is responsible for monetary policy and other central bank tasks in the euro area and administers use of the world’s second largest currency – the euro.

Subscribe to releases from Suomen Pankki

Subscribe to all the latest releases from Suomen Pankki by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Suomen Pankki

Eurooppalaisten pankkien kriisinkestävyys hyvä, mutta rahoitusvakauden riskit koholla geopoliittisen epävarmuuden keskellä – Euroopan järjestelmäriskikomitean tuore arvio28.3.2024 11:21:48 EET | Uutinen

Euroopan järjestelmäriskikomitean (EJRK) hallintoneuvosto totesi 21.3.2024 pitämässään kokouksessa, että eurooppalaisen pankkijärjestelmän kriisinsietokyky on hyvällä tolalla, mutta EU:n rahoitusvakauteen kohdistuvat riskit ovat edelleen koholla ja geopoliittinen epävarmuus on suurta. ”Kärjistyneen geopoliittisen vastakkainasettelun vaikutukset on otettava huomioon myös rahoitusjärjestelmässä. Olemme siirtyneet ilmeisen pysyvästi aiempaa epävakaampaan aikaan, jonka synnyttämät riskit voivat toimia sytykkeenä rahoitusjärjestelmän vakavillekin häiriöille. Siksi on tärkeä ylläpitää ja edelleen vahvistaa rahoitusjärjestelmän kriisinkestävyyttä Euroopassa, jotta pankkien kyky luotottaa yrityksiä ja kotitalouksia pysyy vakaana”, toteaa Suomen Pankin pääjohtaja Olli Rehn, joka toimii varapuheenjohtajana Euroopan järjestelmäriskikomitean hallintoneuvostossa. Hallintoneuvosto totesi makrovakauspolitiikan virityksestä, että maat ovat toteuttamassa oikeita toimia pankkisektorin tappionsietokyvyn

Bank of Finland’s 2023 operating profit weakened considerably by rise in interest rates22.3.2024 11:01:00 EET | Press release

The Parliamentary Supervisory Council has today, upon proposal by the Bank of Finland Board, confirmed the Bank of Finland’s financial statements. The Bank of Finland’s audited profit for the financial year 2023 totals EUR 0.00 after a reduction of EUR 1,112 million was made in the general provision in order to cover a negative operating profit. The Bank of Finland’s financial result and the structure of its balance sheet are a reflection of the monetary policy measures taken to maintain price stability in accordance with the Bank’s mandate. “The rise in interest rates has considerably weakened the Bank of Finland’s operating profit. The Bank has been well prepared for interest rate increases and had strengthened its risk provisions when interest rates were low. The provisions are now being correspondingly reduced. The profit outlook for the next few years is also weak,” says Deputy Governor of the Bank of Finland Marja Nykänen. The European Central Bank (ECB) started raising interest

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
HiddenA line styled icon from Orion Icon Library.Eye