Development of the state program “Culture of financial relations”

Public Organization Financial Stability, which mission is   comprehensive promotion of financial stability in Ukraine and enhancement of the level of financial culture, and recommends to pay attention to the need of cultivation of the concept “Culture of financial relations” in the society.

To avoid any speculations, Public Organization Financial Stability emphasizes that “Culture of financial relations” is not identical to the concepts of “financial culture” and “financial literacy”, but is much wider and includes both of these. Evolution of financial relations evoked the emergence of such concepts as financial culture and financial literacy, but today we are to speak about culture of financial relations.

To have a financially stable future, we shall teach our children and youth financial  literacy, raise their awareness about financial culture and promote formation of  culture of financial relations in the society.

At the legislative level  Ukraine is working on implementation of the project of developing financial literacy among consumers of financial services, however, we are not aware about implementation of projects related to formation of  culture of financial relations in te Ukrainian society, or at least any attempts of state or  any other institutions to initiate reviewing such projects.

We all know very well that till recently complete absence of the national information policy  aimed at formation of the national idea, indifference of the state to humanitarian issues as a whole and  no policy aimed at formation of patriotism among people  resulted in nearly the loss of  the statehood and the events , which occurred in the territory of AR Crimea and now occupied territories of Donetsk region. So, Public Organization Financial Stability deems it necessary to start working on development of the state program  “Culture of financial relations”.

The Chairman of the Board of Public Organization Financial Stability,  Mykola Korolenko, is the holder of the  copyright to the scientific paper titled “Culture of financial relations” registered with the State Patent Service, and members of Public Organization while carrying out their activities make all possible efforts  to  send people the message on the necessity of quality  social changes, collective and individual attitudinal changes, which consist in  rejection of the  idea of financial relations as relations, which are based on fraud and  lies, and replacing it by establishing ethical norms of  conduct of providers and  consumers financial services on the mental level, as well as understanding of the role of the state as an unbiased and honest arbitrator at resolution of  any conflicts, which may arise in the financial market.

Public Organization Financial Stability understands that such work requires a considerable amount of time and efforts, however, it is convinced that it is urgent to start this work without hesitations, regardless ongoing war in the East Ukraine, annexation of a part of the country’s territory owing to aggression of the Russian Federation and related economic problems and adverse situation in the financial market.

Phases of implementation:

1. Analysis of the situation on the financial market, survey among players of the market of financial services on topical issues and consolidation of their standpoints.
2. Development of the state program “Culture of financial relations” on the basis of the actual data obtained from players of the market of financial services.
3. On the basis of this program, building a model of financial relations, which will be agreed upon with players of the financial services market.
4. Approval of the state program “Culture of financial relations”  at the legislative level.

CULTURE OF FINANCIAL RELATIONS

Culture of financial relations is the synergy of human and spiritual values, which shall be the basis for business relations built on mutual respect of participants of financial relations and include abusing of possible advantages by any of participants of such relations and avoiding fulfilling the assumed obligations as such financial behavior will unavoidably lead to mutual losses of subjects of financial relationships. Culture of financial relations provides for the determined search for optimum solutions in the process of realization of financial relations.

Culture of financial relations envisages that the basic condition for building efficient financial relations understands that a solution in any controversial situation shall be found without dishonoring either party. Culture of financial relations can exist only in the society with the adequate level of values allowing to form and build financial relations. The higher is the level of mutual respect among participants of financial relations in the society, the better it will be for everybody.

Culture of financial relations is a much wider notion than the notion of “financial culture” and “financial literacy”. Instead, it includes both these notions. The humankind has financial relations from when the very first financial operations came to existence, such like goods exchange. Evolution of financial relations brought to light such notions as financial culture and financial literacy. Today we already are to speak about culture of financial relations. And to have a financially stable future we need to teach our children and youth financial literacy, give them understanding of financial culture and form culture of financial relations.

Culture of financial relations in any community depends on participants of financial relations: state, institutions providing financial products and services and consumers of such products and services.

The state is obliged to provide proper conditions required for formation  of culture of financial relations between participants of financial relations (institutions providing financial products and services and consumers of such products and services).

Financial institutions shall offer consumers honest and transparent conditions of providing their financial products and services yet at the stage of familiarizing with their terms and conditions (before legally confirmed beginning of financial relations), avert them on all and any negative consequences in case of braking the assumed obligations by consumers, and fulfill bona fide own obligations towards consumers.

Consumers, in their turn, shall be responsible for the assumed obligations and understand own liability for decisions made.

Only good-faith discharge of the assumed obligations by all the participants of  financial relations will give the possibility to introduce into daily life such notion as  “Culture of financial relations” and reach financial stability.