Dear Minister Bytyqi,
Dear Mr. Marco Mantovanelli, Director of the World Bank for Kosovo and North
Macedonia,
-
Dear Mr. Patrick Etienne Country Director, Swiss State Secretariat for Economic
Affairs (SECO)
Dear Ms. Lori Michealson, representative of the US Embassy
Dear President of the Board Mr. Mrasori,
Dear representatives of financial institutions,
Dear students and teachers,
Dear representatives of media
Ladies and Gentlemen,
It is my pleasure to welcome you to this event marking the Global Money Week in
the function of financial education, with our main affiliates, the Ministry of
Education, the World Bank, the Swiss State Secretariat for Economic Affairs
(SECO) and the European Fund for South East Europe, who I would like to take
this opportunity to thank for the unreserved support to advance developments in
the financial sector in Kosovo in general and financial education in particular.
This year, Global Money Week is especially important for two reasons:
Firstly, for the fact that with the activities that we will organize this week,
we have brought the Republic of Kosovo to the attention of the international
arena, where the activities that we will organize this week can be followed
internationally through "live streams" from central banks, regulators and
international organizations dealing with financial education issues;
Secondly, for the fact already announced by the CBK that 2019 will be the
year of consumer protection and the activities that we will organize in the
field of financial education will be in the function of consumer protection.
In the present environment, where we are all witnessing the financial stability that
Kosovo enjoys, placing Kosovo's financial system at a level that is comparable not
only with the countries of the region but also those of the European Union, the
financial education has occupied a specific place on our development agenda.
Moreover, the financial services sector has a strong share in economic growth, job
creation, building of vital infrastructure and sustainable development for Kosovo.
Services and products of the financial sector affect the life of every citizen of
Kosovo. Therefore, we are grateful, to all our associates, some of whom are here
with us today, for the support they have provided to the Central Bank and other
relevant institutions in building a financial market that treats consumers fairly,
encourages financial involvement and helps citizens to make effective use of
financial services.
One of CBK's strategic goals is to encourage the development of a sound financial
system in the Republic of Kosovo and to further develop the financial education
function with a view to creating a sound financial culture that helps all
stakeholders to make the right decisions on the basis of sufficient knowledge. This
knowledge can only be gained through adequate financial education, which is
consequently transformed into financial behaviours. This would be the optimum
reality that all of us present today aspire, but have we managed to accomplish it?
The Central Bank is developing the financial education in the function of three
main dimensions:
- in the function of financial stability,
- in the function of consumer protection, and
- in the function of financial inclusion.
These three dimensions actually cover the whole process of financial activity, from
the first confrontation with the financial product/service to the realization of the
right/obligation in this report.
Financial education in the function of financial stability is built on the premise
of mutual trust. Financial education is the core of trust building. Without trust
there can be no financial stability. If we look from the social welfare point of
view, it is very important whether the citizens are able to properly manage their
finances. But on the other hand, the benefits of financial knowledge extend
beyond the balance sheets and income at the individual or the household level
to the promotion of a stable financial system and efficient resource allocation
within the real economy.
Financial education in the function of consumer protection is an active process
in which information communication is only the beginning, while the ultimate
goal is a positive long-term financial behaviour. Customers' decisions on the
use of products and services are made on the basis of complete and reliable
information as well as on their understanding of this information, therefore the
presentation of this information by financial institutions is critical. Moreover,
such an approach leads to a fair competition of all stakeholders in the financial
sector. The CBK is committed to contributing to economic growth in the
country and to work towards raising quality across the financial sector and
above all to contribute to consumer protection. As a result, with the support of
the European Fund for Southeast Europe "EFSE", we will implement the
project "Improving the transparency of the banking market through building a
platform for comparing interest rates for banks". This platform will enable
citizens to make decisions based on complete and clear information, presented
on a unified platform for all banks. This platform will also help increase a
sound competition in the banking sector. Another important project is the
Collection of Books for Financial Education designed for the lower cycle of
primary schools, which in cooperation with the Ministry of Education will be
distributed throughout all Kosovo schools. Kosovo students will have the
opportunity to get familiarized with the economic-financial educational
concepts that are important to be installed in early education.
The third dimension, the one on financial inclusion is a continuous process of
advancing financial infrastructure in order to increase the availability of
financial products and services at the lowest cost. Financial intermediation has
advanced rapidly through the proliferation of financial services and products
but only at the basic level. Building a financial market that treats consumers
fairly encourages financial involvement and helps citizens to make effective use
of financial services as the main premise of financial inclusion. Therefore CBK
has orientated the financial education program in the function of financial
inclusion in order to stimulate sufficient demand for a wide variety and wide
range of services and products. Therefore, with the support of the World Bank
and the Swiss State Secretariat for Economic Affairs (SECO), we have
managed to design the "Greenback Project" targeting Remittances as a very
important category of revenues in Kosovo, awareness of senders and receivers
of remittances, so that the destination of this category of revenues is
transformed from consumption to investment. In addition, the Remittance and
Payments Program will help the CBK to further advance the payment system
infrastructure, in particular, the broader aspect and the cost-effectiveness of
small payments.
All of us that are here today agree that through financial education we have
managed to address many challenges within the three dimensions, but there is still
work to be done. The financial system is constantly evolving towards expanding
more complex financial products and services, so the financial education program
should respond proactively to this new dimension. This proactivity imposes the
need for the National Financial Education Strategy, for which I consider that now
it is the time to start the dialogue. I consider that today's signing of the Agreement
of Understanding between the Central Bank and the Ministry of Education will be
a good start in this regard.
In conclusion, please allow me to thank the Ministry of Education, Science and
Technology, the World Bank, the Swiss State Secretariat for Economic Affairs
(SECO), the EFSE for the excellent cooperation in achieving the present results
and all you representatives of other relevant institutions for the future cooperation.
Thank you very much!