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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)
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic
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.
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic
Stability of prices
Stability and
development of banks and
payment systems
Mission of CBAR
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic
Implemented works
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic
Central Bank of Azerbaijan Republic
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
Central Bank of Azerbaijan Republic