Greater use of financial products; as well as prudent use 1/3  BIS central bankers' speeches  of credit among households – would promote wealth creation. A nation with a more literate population – can achieve greater financial inclusion through the access and appropriate use of financial products and services. Such households would facilitate in achieving the intended outcomes of macroeconomic policies. Let me focus on three areas that are relevant towards shaping a better future in the context of financial literacy: 1. First – long-term financial planning begins at young age and relevant at each key life stages. 2. Second – on the individual responsibility to take charge of its own financial decisions and well-being; and 3. Third – building financial capability and enhancing literacy – is a shared responsibility. I will share the on-going collaborative efforts undertaken to raise financial literacy among Malaysians. Talking about long-term financial planning Based on Bank Negara Malaysia’s observation – there is a continuing concern – on the lack of attention to long-term financial planning among a majority of Malaysians. Only 40% of Malaysians are financially ready for retirement. A recent focus group discussion with retirees – shows that they would still rely on their children or purchase using credit in the event of emergency or for higher value items. This could be a result of lack of financial planning when they were younger.
Furthermore, our analysis6 shows that there are only limited spillovers from the monetary policy of the Federal Reserve to euro area inflation and output. This suggests that ECB monetary policy actions are, by and large, able to shield the euro area economy from spillovers from US monetary policy. But undoubtedly, there is evidence that US monetary policy is a driver of a “global financial cycle”.7 In step with such a financial cycle the risks to euro area financial stability can change as well. Current financial stability concerns in the euro area As you know, our characterisation of the main risks to euro area financial stability has remained broadly unchanged over the recent years. We see four main risks: The most prominent risk stems from the possibility of a disorderly increase of global risk premia. The second risk is related to renewed debt sustainability concerns, for sovereign debt in particular. The third risk is that banks’ intermediation capacity may be hampered by their continued low profitability. Finally, we are of the opinion that possible liquidity strains in the investment fund sector constitute a growing risk. All four risks are intertwined and would have, if they were to materialise, the potential to be mutually reinforcing. In 2018, a growing economy and improved banking sector resilience were important positive factors supporting financial stability. Now, however, the assessment is affected by a weakening economic growth outlook for the euro area.