Risk-Based Supervision (RBS)

1
FINANCIAL LITERACYThe Experience of the Bangko
Sentral ng Pilipinas
RBI-OECD Workshop on Financial Literacy Challenge
s, Strategies and Instruments Bangalore, India 22
March 2010
2
Outline of the Presentation

• Present state of financial literacy
• Advocacies and programs
• The different players
• Challenges ahead

3
Where are we now?

• As much as 53 of Filipinos feel that they have
  average or poor overall level of
  understanding about money management and personal
  finances
• Filipinos are generally pragmatic and appreciate
  the value of saving, but only 36 save regularly
• On average, Filipinos say that their current
  savings would only last 9 weeks

4
Where are we now?

• Only a third make a monthly budget and stick to
  it
• Only 40 are able to pay off the entire
  outstanding balance of their credit cards every
  month
• Financial protection and independence are dire
  needs that are set aside

5
What are we doing?
6
School children

• Integration of lessons in school curriculum
• Lessons on money
• Money management
• Basic economics related to savings
• Targets elementary school children
• 12 million in public schools
• 1.5 million in private schools

7
Students in Colleges and Universities

• Exploratory talks to include financial planning
  as a 3-unit undergraduate subject
• Financial education expo
• Philippine financial system
• Wise money management
• Make money work for you
• Financial Planning for life-cycle events
• Credit card awareness sessions

8
Working Sector

• Financial education and consumer protection
  sessions
• Financial education campaigns for Overseas
  Filipinos and their families
• Public information campaigns on concepts and
  issues on the economy and BSPs role in economic
  development

9
Marginalized Sector

• Clients lectures and basic trainings about
  microfinance services, requirements and
  procedures, and micro-entrepreneurship
• Stakeholders - enhance awareness on microfinance
  and increase their skills, capacity,
  understanding and appreciation of microfinance
  operations

10
Other Initiatives and Collaborations

• Website Materials and Consumer Portal
• Be a Wise Saver Campaign
• Out-of school youths
• Savings consciousness and banking stability in
  high schools
• Financial Sector Forum - Consumer Protection and
  Education Committee
• Microfinance Literacy Program

11
BSP Departments/Offices Involved

• Financial Consumer Affairs Group
• Undertakes various initiatives to deliver
  financial education to consumers
• Department of Economic Statistics
• Conducts public information campaigns for
  Overseas Filipinos and their families
• Economic and Financial Learning Center
• Focal source of relevant information concerning
  economic and financial matters

12
Other Public Sector Agencies

• Department of Education
• Commission on Higher Education
• Financial Sector Forum
• ConsumerNet
• Philippine Microfinance Committee

13
Private Sector

• Coordinating Council of Private Educators
  Association
• Associations of various financial institutions
• Chamber of commerce, industry and professional
  associations

14
Challenges Ahead

• Integration of Financial Education Activities
• Internal
• National
• National Survey
• National Education Masterplan
• Evaluation

15
THANK YOU
www.bsp.gov.ph Trunk Line [phone] FCAG
[phone] EFLC [phone]