Regulatory Alerts2017-04-12
Circular dated April 6, 2017 regarding the Arab Financial Inclusion Week
The goal of financial literacy and education is to improve the overall economic well-being of a society by equipping individuals with the knowledge, skills, and abilities needed to make informed decisions about their personal finances. This includes promoting responsible borrowing and saving habits, reducing excessive debt, minimizing unnecessary financial costs, and respecting individual financial rights and responsibilities. Financial literacy and education play an important role in empowering citizens to take control of their economic lives and contribute positively to the national economy. They provide individuals with the tools they need to understand and navigate the complex world of finance, including budgeting, saving, investing, borrowing, insurance, and retirement planning. By enhancing financial literacy and education, societies can promote more inclusive economic growth, reduce income inequality, increase individual financial resilience, and foster a culture of entrepreneurship and innovation. Additionally, it helps to ensure that individuals are better equipped to manage financial shocks, such as job loss or unexpected expenses, without falling into poverty or indebtedness. The primary objectives of promoting financial literacy and education are: 1. To improve the overall level of financial knowledge and understanding within a society, ensuring that individuals are well-informed about their personal finances. 2. To equip individuals with the skills needed to manage their finances effectively, enabling them to make sound financial decisions that support their long-term financial goals. 3. To encourage responsible borrowing and saving habits, minimizing the risk of individuals falling into debt traps or facing financial hardship. 4. To reduce unnecessary financial costs, such as high-interest rates on loans or fees associated with financial products and services. 5. To ensure that individuals understand their rights and responsibilities when it comes to personal finance, fostering a culture of accountability and integrity in financial matters. 6. To equip small businesses and entrepreneurs with the knowledge and skills needed to manage their finances effectively, supporting economic growth and job creation. 7. To promote financial inclusion by ensuring that all individuals have access to affordable financial products and services, regardless of their income level or social status. 8. To enhance consumer protection by providing individuals with the information they need to make informed decisions about financial products and services. 9. To support government efforts to achieve economic stability and growth through the development and implementation of sound fiscal policies.