http://www.cba.ca/eng/building_index.htm BANKS RESPOND TO CANADIANS' NEED FOR BETTER ECONOMIC AND FINANCIAL INFORMATION January 13, 1998 TORONTO - The banking industry today announced a major commitment to "Building a Better Understanding" - a long-term program to enhance its relationship with Canadians. "It's no secret to anyone that our industry faces a communications challenge," said Raymond Protti, President of the Canadian Bankers Association. "Clearly, we have work to do to improve our dialogue with Canadians. The commitment we are making today will help us do that." Research into the industry's relationship with Canadians revealed that many people have unanswered questions about today's financial world. As part of the new communications program, the CBA today released a survey that identifies the specific information Canadians say they need. "We're making a promise to help provide more information about the economy and today's changing financial world," said Mr. Protti. "Simply put, we asked, we listened and we are responding." The Survey of Canadians' Economic and Financial Understanding revealed that only eight per cent of Canadians say they are very knowledgeable about the economy. But more than two-thirds say they could improve their own financial future if they knew more about the economy and how it affects them. Even though most Canadians say they lack a basic understanding of the economy, the survey found 90 per cent believe it is important to know how the economy works, with almost half (45 per cent) saying this is very important for their own financial planning. The random survey of 1,500 Canadians, conducted nationally November 3-10, was sponsored by the Canadian Bankers Association in co-operation with the Canadian Foundation for Economic Education. Further details are available in the attached highlights and survey report. Beginning in the spring, the banking industry will use a full range of communications tools from brochures and electronic materials to conferences and seminars to help get more financial and economic information into the hands of Canadians. The CBA is creating a National Advisory Council of educators and other professionals to help develop and advise on the best way to get the needed information to Canadians. The members of the council will be announced shortly. "Today is an important step in our industry's effort to improve our communication with Canadians," said Holger Kluge, Vice-Chairman of the CBA and President of CIBC Personal and Commercial Bank. "We've spent more time managing change than we have communicating what that change means. Our industry is very late in recognizing and acting on the obvious - We have not been good communicators." In addition to wanting to know more about the economy, the survey found that Canadians want more information on some areas of personal finance, including providing for their children's education, retirement planning, investing, and starting a small business. "Canadians understand they need more information about how economic factors, such as inflation and deficits, affect their lives," said CBA Vice-Chairman Leon Courville, President and Chief Operating Officer of National Bank of Canada. "What they want - and what the industry will help deliver - is information they can use." The CBA aims to start raising awareness of this commitment through a television commercial that will begin running nationally tonight. Established in 1891, the Canadian Bankers Association is a professional industry association representing Canada's chartered banks, both domestic and foreign, which employ more than 221,000 Canadians. -30- SURVEY OF CANADIANS' ECONOMIC AND FINANCIAL UNDERSTANDING HIGHLIGHTS Only eight per cent of Canadians say they are very knowledgeable about the economy. Two-thirds say they could improve their own financial future if they knew more about the economy and how it affects them. Nine in ten people believe it is important to know how the economy works, with almost half (45 per cent) saying this is very important for their own financial planning. When asked, seven out of ten Canadians could not identify the current inflation rate. Almost six out of ten people didn't know the amount of either the federal deficit or debt. One-third of Canadians believe incorrectly that mutual fund investments are insured like deposits at banks, trust companies and credit unions. 53 per cent of Canadians expect today's youth will be worse off than their parents, reversing the long-standing notion that every generation will be better financially than the previous one. Fewer than two in ten Canadians (17 per cent) can be considered knowledgeable about the economy, according to an overall index of Canadians' economic and financial understanding derived from a series of survey questions. A large majority of people (83 per cent) has only limited or extremely limited economic knowledge, according to the survey's overall index. Regards, Tom Walker ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Know Ware Communications Vancouver, B.C., CANADA [EMAIL PROTECTED] (604) 688-8296 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ The TimeWork Web: http://www.vcn.bc.ca/timework/
