(достапно на англиски јазик)

Opening Remarks by the Governor of the National Bank of the Republic of North Macedonia, Mrs. Anita Angelovska-Bezhoska at the “Peer Learning Event on Financial Education” co organized with the OECD INFE, 10 December 2024

Esteemed representatives of OECD, dear participants, ladies and gentlemen   

It is a great honor and a privilege to welcome you all to this gathering dedicated to enhancing financial education and inclusion in our communities. This event aims at deploying collaborative and inclusive approach, first, in stocktaking of the achieved impact by our first National Strategy for Financial Education (NSFE) and second, in identifying main contours of the new medium-term Strategy, i.e. in paving the way forward. The experience of other countries in achieving new milestones and devising new strategic frameworks, which will be generously shared with us today by colleagues from Armenia, Croatia, Georgia, Italy and Poland, will provide an important foundation for our future strivings. The fact itself that we gather here to discuss the importance of financial education and inclusion, and the disparities that still remain on the fore, clearly underscores a shared commitment to fostering a financially-literate society that empowers all individuals, regardless of their background.

Financial education and financial inclusion are at the centerpiece of the economic growth and overall well-being of societies. They are important for individuals, as only financially educated people can make sound financial decisions about saving, borrowing, investing. They also underpin the entire financial system, as financial literacy reduces the risk of over-indebtedness, which can adversely affect the stability of the entire financial system.  Having a financially literate population increases the probability for greater access to finance, as a prerequisite for increasing economic growth. This is particularly important for this region, where financial convergence and access to finance lag behind more developed countries.

The financial intermediation gap to EU is large, i.e. the loans to GDP ratio averages 45% versus 80% in EU. An OECD Survey that monitors progress in convergence finds that access to finance remains a convergence challenge across the entire region, especially when it comes to alternative finance, as capital markets remain largely underdeveloped. Similarly, an IMF index, which measures not only the financial depth, but also the financial sophistication, points to a regional financial development that is broadly half of the EU.

And while the importance of financial education and inclusions is indisputable, the data indicate that there is a lot of ground to cover, including in developed economies.  Recent report of the OECD’s International Network on Financial Education (INFE) has highlighted that financial literacy levels across Europe remain alarmingly low. Only 52% of adults in Europe demonstrate basic financial knowledge[1], a statistic that calls for immediate action. Only 42% of the Macedonian adult population achieved the minimum target score (answering correctly 5 out of 7 questions), indicating that they demonstrate basic financial knowledge.[2]

How does the financial inclusiveness look like through the lenses of the global findex database, as one of the main yardsticks in this matter? It shows that globally, inequality in account ownership along gender, income, and other dimensions persists, despite continued growth in account ownership.  The global account ownership increased from 51% to 76% between 2011 and 2021, but significant disparities remain. Gender inequality is especially persistent. While 78.3 percent of men around the world have an account, just 73.9 percent of women do. Account ownership is also lower among poorer households, young, the less educated, and people who are out of the labour force. These gaps in the access to finance are not just a statistics. They represents lost opportunities for growth and development of our economies.

Focusing on the gender gap, the World Bank’s findings have revealed that the gap in account ownership in emerging economies is reduced by only 3 percentage points over a decade (from 9 p.p. in 2011 to 6 p.p. in 2021). Globally, women are 31% more likely to have an inactive account than men, with 35% of women in emerging markets storing money in accounts compared to 43% of men, and unbanked women in emerging markets are 25% less likely than men to say they could use an account self-sufficiently.[3]

In the Macedonian case, gender gap similarly manifests itself through lower rate of bank account ownership of women compared to men. According to the latest data (2021), about 80% of women versus 91% of men have an account. To bridge this divide, we must implement targeted interventions designed specifically for women. Additionally, addressing societal norms that perpetuate gender biases will be crucial in changing perceptions around women’s capabilities in managing finances. By fostering an inclusive environment where women feel empowered to participate fully in economic activities, we can unlock their potential as drivers of growth.

As I mentioned before, financial literacy and inclusion gaps are visible among the age dimensions as well.  An OECD study[4], showed that only 40% of young people in SEE have achieved high scores in questions related to knowledge of inflation, interest calculation and understanding of risks. On average, 40% of young people in the SEE region do not take care of their finances, and approximately as many of them make impulsive purchase decisions, which can endanger their financial wellbeing.  In our case, although the percentage of young people who have an account grew (between 2011 and 2021) to 74%, still it is well below the Eurozone average of 95%. The percentage of young people who save in a financial institution is only 15%, compared to 60% in the Eurozone.

I have pinpointed all these figures, as I believe that our actions have to be data driven. The data also illustrate that all our concerted efforts to tackle these problems are critical for enabling inclusive and sustainable growth.

In this vein, the implementation of our first National Strategy for Financial Education and Inclusion has been a comprehensive and inclusive effort. A robust framework for cooperation has been established, bringing together participants from different sectors, including regulatory and educational institutions, civil society organizations and the private sector. This collaborative approach led to many initiatives such as adoption of the first Code of Good Practices and the first Core Competences on Financial Education. We are particularly grateful for the support received from the INFE OECD, which have provided valuable resources and expertise within a project financed by the Dutch Ministry of Finance. The financial literacy survey of adults, conducted at the beginning of the project, has proven to be instrumental in understanding financial literacy gaps. Furthermore, the insights gained from the survey of small and medium-sized enterprises (SMEs) have provided a basis for targeted interventions that aim to improve financial knowledge and practices among SMEs, which are a backbone of our economy creating 70% of the total value added.

Therefore, in our future strivings, we must assess current programs’ effectiveness through rigorous analysis and stakeholders’ feedback. This involves not only measuring knowledge acquisition, but also evaluating behavioral changes resulting from educational initiatives. We must critically evaluate the effectiveness of our current actions by asking ourselves: are we achieving the desired outcomes with our financial education initiatives, i.e., what is their impact on the overall financial literacy and inclusion levels? To address these questions, we will draw upon best practices from around the globe while tailoring solutions to fit our unique context.

In closing, I urge each of you to engage actively in discussions over the coming sessions. Let us share insights from our experiences and collaborate towards actionable solutions, which can further enhance wellbeing of our citizens and society.

I think it is well established that money is not a goal, but only a tool. In this vein, I would like to leave you with a thought from the famous economist Muhammad Yunus[5]: "Money is simply a tool that helps unlock human dreams and helps even the poorest and most unfortunate people on this planet, achieve dignity, respect and meaning in their lives."

Thank you.