Banco de España defends financial education to guarantee stability

MADRID, 3 Oct. (EUROPA PRESS) -

The Governor of the Bank of Spain, Pablo Hernández de Cos, has highlighted the "macroeconomic aspect" of financial education, since the fact that citizens make "responsible" decisions, assuming and knowing the risks of these decisions, is absolutely essential to guarantee financial stability".

De Cos recalled that the supervisors of the banking sector have a responsibility "that they are not going to avoid", but that the work of these institutions "is made much easier" if citizens have financial education that allows them to make prudent decisions assuming the risks.

This is how he defended it during his speech at the Bell Ringing for Financial Education organized this Monday by Bolsas y Mercados Españoles (BME) at the Barcelona Stock Exchange, coinciding with Financial Education Day, which is celebrated every year on the first Monday of october.

The Governor of the Bank of Spain has recalled that the celebration of this day, promoted by the supervisor itself, the National Securities Market Commission (CNMV) and by the Ministry of Economic Affairs and Digital Transformation, includes the celebration of a central act, which will also take place in Barcelona, ​​as well as other activities and events organized by collaborating associations and entities.

During his speech, De Cos also highlighted the "purely microeconomic aspect", since "when citizens have adequate information they are capable of making adequate and prudent decisions, for example, about their savings or real estate matters, something that will determine the welfare of citizens for many years to come.

The governor has recalled the demand of the supervisors to incorporate financial education in both Baccalaureate and Secondary Education, something that he considers "investing in the future". "It will be much easier for our adults then to have a solid financial base based on that primary education," the governor has maintained.

However, he also mentioned the work being done today to improve the financial education of other groups, such as those with lower incomes, who make daily decisions "that affect their future well-being" and who need training "to be appropriate to their needs".

As for the group of older people, he pointed out that, in many cases, a financial education "which is not very high" is combined with "low" digital knowledge. "If one does not have good digital training, despite having good financial training, it is very difficult for them to end up making the right decisions", which is why he has also defended that training in both aspects is "absolutely fundamental", without forgetting , however, to access to physical services.

Finally, he highlighted training for entrepreneurs, particularly those with small and medium-sized businesses, as well as training in security for the field of financial activity, the issue that is the focus of this edition of Financial Education Day. In this aspect, he has included providing information to citizens to prevent fraud in the use of online banking or in the use of non-regulated investment platforms.

The Ring of the Bell is part of the Ring the Bell For Financial Literacy initiative, promoted by IOSCO and WFE, and in which more than 70 Stock Exchanges around the world also participate throughout this week. The event was also attended by the CEO of BME, Javier Hernani, who reiterated his company's commitment to financial education.

"The greater the financial culture of a society, the better investment decisions its citizens will make, which has a favorable effect on the proper functioning of the financial markets and on the progress of the economy as a whole", he stressed.