The National Bank of Georgia continues developing educational videos for the purpose of fostering financial Literacy

The National Bank of Georgia continues developing educational videos for the purpose of fostering financial Literacy

24 February, 2016
Inflation, banking, balance sheets, law of supply, GDP in depth – these are the topics covered by the new eight educational videos, developed by the National Bank of Georgia. The NBG started this project in 2015 for the purpose of fostering financial literacy in the country.

The target audience of Khan Academy videos, developed on the subjects of economics and finance, includes viewers with all levels of proficiency in the given subjects. These video-lectures will not only improve consumers’ general knowledge in these fields, but also help them make more informed financial decisions. According to the international practice, engaging and interactive videos constitute one of the most effective ways for spreading financial literacy.

Video-lectures vary in content and difficulty; the first five Georgian Khan Academy videos developed by the NBG in 2015 cover the topics of Gross Domestic Product (GDP) and its components, simple and compound interest on deposits, and the law of demand.

The videos which will be developed during the next two months will cover the following subjects: simple and compound interest on loans, time value of money, nominal and effective interest rates, monetary policy, mortgage loans, bank’s income statement, international currency reserves and more. In addition to the videos developed in cooperation with the Khan Academy, the NBG is planning to develop its own educational video-resources which will cover foreign borrowing risks and other topics that are particularly relevant for Georgia. It is noteworthy that the existing financial consumer protection framework already entails the requirement to disclose to the consumers the information on the FX risk, as well as the development and distribution of educational resources on this topic.

It must be mentioned that the feedback received from the consumers will help the National Bank of Georgia better determine the topics and the approaches for developing future videos.

Otar Nadaraia, Deputy Governor of the NBG, stated: "This project is highly important for enhancing the level of financial literacy in the country. In the future it is essential to further strengthen the efforts in this direction." 

Georgian-language versions of Khan Academy videos are available on the designated YouTube  channel, as well as the NBG’s Consumer’s Page . During the next two months, it is planned to develop 24 more videos. This project was made possible with the support from the Development Facility of the European Fund for Southeast Europe (EFSE DF), while "Media House Dekom" provided technical assistance to the NBG.

Khan Academy is a non-profit educational organization, which was established in the United States in 2006, and which aims at rendering free, high-quality education accessible for everyone globally. Khan Academy videos constitute easily comprehensible and engaging lessons on numerous subjects. Currently, Khan Academy videos are translated to more than 60 languages and are highly popular, especially across educational institutions, such as schools.

The European Fund for Southeast Europe (EFSE) is one of the largest investment funds specializing in development finance. One of the Fund’s objectives is to foster economic advancement and responsible private sector development in Eastern Europe and European Eastern Neighborhood region. The development facility of the EFSE (EFSE DF) was established in 2006 in order to support EFSE’s development finance mandate through the provision of effective, targeted and innovate technical assistance.