Financial Literacy Research and Development Center October, 2012 Central Bank of Azerbaijan Republic

Financial Literacy

Central Bank of Azerbaijan Republic

Research and Development Center

October, 2012Central Bank of Azerbaijan Republic

What is financial literacy?

The process by which financial consumers/investors improve their understanding of financial products and concepts and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being.

(OECD)


Overview

OECD started an inter-governmental project in 2003 In 2006, G8 highly evaluated the work of OECD on

financial literacy and highlighted its importance In 2008, the OECD launched the International Gateway

for Financial Education with composition consisting of 220 members from more than 100 countries (CBAR joined the network on 2010)

In 2011, financial literacy was included in PISA. In 2012, financial inclusion and financial literacy were

included to the agenda of G20


Why financial literacy and financial education is important in the realm of increasing the financial risks:

The transmission of risks to the households

Uncertainty and complexity in the financial environment

Low-level of financial literacy among people in all the countries.


What is being done in international arena?

In most of the developing and developed countries different activities are being held on financial literacy for various target groups:

- Teaching the financial literacy in schools

- Internet portals and campaigns for financial literacy in mass media

- Training of trainers, conferences, round-tables and others

- These activities are carried out by governments, private sector and civil society


Summary of international experience

Some countries have State Programs and national strategies on financial literacy

Multi-sectoral Commissions coordinate the financial literacy programs

The attempts to include financial literacy to the school curriculum are increasing

Some countries have consultation centers on financial literacy Portals with various resources for different target groups are widely

used Central Banks and commercial banks carry out various educational

campaigns for different target groups on financial literacy


Summary of international experience – part 2






What is being done by banks?

Visits to schools are organized, schoolchildren visit banks

Small gifts – pens, notebook, chocolate, saving boxes

Textbooks and interesting booklets Interactive games, quizzes, cross-words which

can be used in main courses in schools Paintings, essay competitions


Objectives

To prepare talented and informed clients on finance and economics

To educate parents with the help of their children

To change the financial behavior of people Corporate social responsibility To decrease the risks


AT CH DE ECB LT PL UK US

Target groups

School-children X X X X X X X X

Society X X X X X X X X

Journalists X X X X

Students X X X X X X

Research institutes X X X X X X

Educational services

Trainings X X X X X X

Special seminars X X X X X X

E-learning (web site) X X X X X X X X

E-learning portals X X X

Educational and teaching products of central banks International experience

AZ

X

X

X

X


Stability of prices

Stability and

development of banks and

payment systems

Mission of CBAR


Effectivness of monetary policy

Smooth process of financial markets

Supporting sustainable economical policy

Recognition of financial and education literacy as a public

value

Increasing the reputation of the Bank

Financial and

economical education

Virtual Bank

E-University

Library

Museum

Publishing

Financial Literacy

CBAR and Financial Literacy

Main target groups

School children

Knowledge on

managing money, special

education packages on economical knowledge,E-learning

Society

Journalists specialized in

economics and other stake holders

CBAR employees, bank staff,

students learning banking

Special trainings, presentations, round table discussions, E-learning

Special training modules

according to the CBAR HR strategy, training courses,

trainings, series of seminars, master,

E-learning

Presentations,

seminars, special training

modules, internship, E-learning


Implemented works


On-sight international experience was learned (England, Germany, Poland and etc)

Connections were established with donor organizations (WB, SECO,GİZ, SBFIC)

Educational activities have been organized for students and journalists

Several meetings in schools have been organized with Ministry of Education and recommendations have been prepared for curriculum

Series of events on “Banks to schools, schools to banks” have been prepared

“Financial education and financial literacy for children: equal opportunities for future” conference was held.

“Economical football” interactive game was organized with “VISA” and Ministry of Taxes



Financial literacy: perspectives

Reinforcing the socio-economic development of the country

Supporting the development of banking system in Azerbaijan

Increasing financial and educational literacy in the country

Recognition of financial literacy as a public value

Changing the behavior of people

An investment in knowledge always pays

the best interest

B. Franklin


Considering the importance of Public Private Partnership (PPP)

We invite you to join us in this process!


Documents

Financial Literacy Research and Development Center October, 2012 Central Bank of Azerbaijan Republic