National Bank of Hungary governor András Simor pressed for the creation of a national strategy to make ordinary Hungarians more financially savvy, speaking at a conference on Thursday.
Hungary’s financial system is stable because it has well operating banks with strong capital positions, but there is a need to develop consumers’ financial understanding, Simor said. Creating a financial culture for ordinary Hungarians could contribute to the country’s financial stability, but this requires an appropriate education system and the establishment of cooperation between sectors, he added.
The fast development of banking services and the continuous renewal of products as a result of globalization compounds the asymmetry between the seller and the buyer, Simor said. There is significant risk that the buyer neither understands the product being purchased nor is able to gauge the attached risks because of a lack of information.
OECD Secretary-General Angel Gurria said at the same conference, the lesson to be learned from the global financial crisis is that no country should be idle when it comes to financial education. The country (Hungary) is “well-prepared” to face the current global financial crisis, he said (MTI-Econews, Bg)