Financial Literacy Research and Development Center October, 2012 Central 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

Summary of international experience – part 2 Central Bank of Azerbaijan Republic

Summary of international experience – part 3 Central Bank of Azerbaijan Republic

Summary of international experience – part 4 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

ATCHDEECBLTPLUKUS Target groups School-children XXXXXXXX Society XXXXXXXX Journalists XXXX Students XXXXXX Research institutes XXXXXX Educational services Trainings XXXXXX Special seminars XXXXXX E-learning (web site) XXXXXXXX E-learning portals XXX AZ X X X X Central Bank of Azerbaijan Republic

Stability of prices Stability and developmen t of banks and payment systems 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

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 Presentatio ns, 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

 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

Central Bank of Azerbaijan Republic