Saturday, March 22, 2008

Index of financial inclusion

The importance of financial services in all of our lives, has in recent years increased considerably. This is a consequence of both scale and more prosperous economy of the United Kingdom, and a financial services industry innovative, which has grown more and more ways to meet the needs of its customers. Exclusion of the financial system brings with it, therefore, real and rising costs, often borne by those who can least afford it, which is why the promotion of financial inclusion has been and continues to be a key priority for the government.

To ensure that the less people as possible have to bear these costs, the government has taken the responsibility to develop a strategic policy response, in collaboration with key stakeholders of the financial services industry, the third sector and elsewhere. The main objectives of the government for financial inclusion is to ensure that everyone has access to appropriate financial services, enabling them to:

* Manage their money on a daily basis, effectively, safely and with confidence;
* Planning for the future and to cope with financial pressures, the management of their finances to protect against fluctuations in the short term revenue and expenditure, and to take advantage of opportunities in the longer term, and
* Dealing effectively with financial difficulties, unexpected events should lead to serious financial difficulties.

The government's action plan for financial inclusion, inclusion of the budget: an action plan for 2008-11, sets out in detail how the government could use the £ 130 million inclusion of the Fund, announced in CSR to achieve its objectives on financial inclusion The next three years spending period from April 2008 to March 2011.
Financial Inclusion - the way forward

The action plan is based on financial inclusion - the way forward, which sets the policy framework for financial inclusion in 2008-11, including:

* Inclusion of a new fund for financial 2008-11;
* An extension of the task force on financial inclusion until March 2011, so that it can continue to monitor and evaluate progress and advise the Government on the evolution of financial inclusion, and
* A ministerial working group chaired by the Economic Secretary to the Treasury, with members of the Department for Work and Pensions, the Department, business and regulatory reform, the Department of Communities and Local Government, Cabinet Office and the Department of Justice Develop an action plan for financial inclusion in 2008-11.

Promoting financial inclusion

The government of the first strategy for integrating financial, promoting financial inclusion, was published in December 2004. This:

* Announced the creation of a dedicated Financial Inclusion Fund of £ 120 million for the period 2005-08 expenditures;
* Announced a goal shared by the government and banks, to halve the number of adults living in households without access to a bank account, and to make significant progress in two years -- recently announced that 60 percent of the progress needed to achieve the objective had been made, and
* Set up a task force on the inclusion of independent financial advice to the government and monitor progress.

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