Financial Literacy May Help UAE Financial Market

April is declared as Financial Literacy Month to backed up the subprime crisis not only in US but also in the world market. Since almost all countries are directly affected by the financial crisis, 92 countries attended the lauching of the program designed to educate people in saving their markets. UAE, though, not directly afftected with the trend has still to adopt the program, since, they too, have encountered slight problems on their financial stability. Would this help the ailing economic markets of some affected countries?

Although the UAE's Federal National Council, Saudi Arabia's Shura Council and Kuwait's parliament aired their worries last year, amidst some calls to set limits on bank lending, nothing significant has been done to curtail the growing credit culture in the region.

The political establishments and regulators are aware that banks are not entirely to blame. Banks do follow an installment income ratio (IIR), which ensures that individuals are not debt-trapped. However, it is often individuals who hoodwink the system through multiple means of personal leverage.

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