The survey on financial literacy among the citizens of Bosnia and Herzegovina was conducted within a larger project that aims at creating the Action Plan for Consumer Protection in Financial Services. The conclusion about the need for an Action Plan was reached by the representatives of the World Bank, the Federal Ministry of Finance, the Central Bank of Bosnia and Herzegovina, supervisory authorities for entity financial institutions and non-governmental organizations for the protection of consumer rights, based on the Diagnostic Review on Consumer Protection and Financial Literacy in Bosnia and Herzegovina conducted by the World Bank in 2009-2010. This diagnostic review was conducted at the request of the Federal Ministry of Finance, as part of a larger World Bank pilot program to assess consumer protection and financial literacy in developing countries and middle-income countries. The diagnostic review in Bosnia and Herzegovina was the eighth within this project. The financial literacy survey, whose results are presented in this report, aims at establishing the basic situation with respect to financial literacy, serving on the one hand as a preparation for the educational activities plan, and on the other as a basis for measuring the efficiency of activities undertaken.

Abstract

The survey on financial literacy among the citizens of Bosnia and Herzegovina was conducted within a larger project that aims at creating the Action Plan for Consumer Protection in Financial Services.

The conclusion about the need for an Action Plan was reached by the representatives of the World Bank, the Federal Ministry of Finance, the Central Bank of Bosnia and Herzegovina, supervisory authorities for entity financial institutions and non-governmental organizations for the protection of consumer rights, based on the Diagnostic Review on Consumer Protection and Financial Literacy in Bosnia and Herzegovina conducted by the World Bank in 2009-2010. This diagnostic review was conducted at the request of the Federal Ministry of Finance, as part of a larger World Bank pilot program to assess consumer protection and financial literacy in developing countries and middle-income countries. The diagnostic review in Bosnia and Herzegovina was the eighth within this project.

The financial literacy survey, whose results are presented in this report, aims at establishing the basic situation with respect to financial literacy, serving on the one hand as a preparation for the educational activities plan, and on the other as a basis for measuring the efficiency of activities undertaken.

Geographic coverage

Data collection was based on a random, nation-wide sample of citizens of Bosnia and Herzegovina aged 18 or older (N = 1036).

Analysis unit

Household, individual

Universe

Population aged 18 or older

Kind of data

Sample survey data [ssd]

Sampling procedure

SUMMARY

In Bosnia and Herzegovina, as is well known, there is no completely reliable sample frame or information about universe. The main reasons for such a situation are migrations caused by war and lack of recent census data. The last census dates back to 1991, but since then the size and distribution of population has significantly changed. In such a situation, researchers have to combine all available sources of population data to estimate the present size and structure of the population: estimates by official statistical offices and international organizations, voters? lists, list of polling stations, registries of passport and ID holders, data from large random surveys etc.

The sample was three-stage stratified: in the first stage by entity, in the second by county/region and in the third by type of settlement (urban/rural). This means that, in the first stage, the total sample size was divided in two parts proportionally to number of inhabitants by entity, while in the second stage the subsample size for each entity was further divided by regions/counties. In the third stage, the subsample for each region/county was divided in two categories according to settlement type (rural/urban).

Taking into the account the lack of a reliable and complete list of citizens to be used as a sample frame, a multistage sampling method was applied. The list of polling stations was used as a frame for the selection of primary sampling units (PSU). Polling station territories are a good choice for such a procedure since they have been recently updated, for the general elections held in October 2010. The list of polling station territories contains a list of addresses of housing units that are certainly occupied.

In the second stage, households were used as a secondary sampling unit. Households were selected randomly by a random route technique. In total, 104 PSU were selected with an average of 10 respondents per PSU. The respondent from the selected household was selected randomly using the Trohdal-Bryant scheme.

In total, 1036 citizens were interviewed with a satisfactory response rate of around 60% (table 1). A higher refusal rate is recorded among middle-age groups (table 2). The theoretical margin of error for a random sample of this size is +/-3.0%.

Due to refusals, the sample structure deviated from the estimated population structure by gender, age and education level. Deviations were corrected by RIM weighting procedure.

MORE DETAILED INFORMATION

IPSOS designed a representative sample of approximately 1.000 residents age 18 and over, proportional to the adult populations of each region, based on age, sex, region and town (settlement) type.

For this research we designed three-stage stratified representative sample. First we stratify sample at entity level, regional level and then at settlement type level for each region.

Sample universe:

Population of B&H -18+; 1991 Census figures and estimated population dynamics, census figures of refugees and IDPs, 1996. Central Election Commision - 2008; CIPS - 2008;

Sampling frame:

Polling stations territory (approximate size of census units) within strata defined by regions and type of settlements (urban and rural) Polling stations territories are chosen to be used as primary units because it enables the most reliable sample selection, due to the fact that for these units the most complete data are available (dwelling register - addresses)

Type of sample:

Three stage random representative stratified sample

Definition and number of PSU, SSU, TSU, and sampling points

• PSU - Polling station territory Definition: Polling stations territories are defined by street(s) name(s) and dwelling numbers; each polling station territory comprises approximately 300 households, with exception of the settlements with less than 300 HH which are defined as one unite. Number of PSUs in sample universe: 4710
• SSU - Household Definition: One household comprises people living in the same apartment and sharing the expenditure for food
• TSU - Respondent Definition: Member of the HH , 18+ Number of TSUs in sample universe: = 2.966.766
• Sampling points Approximately 10 respondents per one PSU, total 104

Stratification, purpose and method

• First level strata: Federation of B&H Republika Srpska Brc ko District
• Second level strata: 10 cantons 2 regions -
• Third level strata: urban and rural settlements
• Purpose: Optimisation of the sample plan, and reducing the sampling error

• Method: The strata are defined by criteria of optimal geographical and cultural uniformity

• Selection procedure of PSU, SSU, and respondent Stratification, purpose and method

• PSU Type of sampling of the PSU: Polling station territory chosen with probability proportional to size (PPS) Method of selection: Cumulative (Lachirie method)

• SSU Type of sampling of the SSU: Sample random sampling without replacement Method of selection: Random walk - Random choice of the starting point

• TSU - Respondent Type of sampling of respondent: Sample random sampling without replacement Method of selection: TCB (Trohdal-Bryant scheme)

• Sample size N=1036 respondents

• Sampling error Marginal error +/-3.0%

Mode of data collection

Face-to-face [f2f]

Research instrument

The survey was modelled after the identical survey conducted in Romania. The questionnaire used in the Financial Literacy Survey in Romania was localized for Bosnia and Herzegovina, including adaptations to match the Bosnian context and methodological improvements in wording of questions.

Cleaning operations

Before data entry, 100% logic and consistency controls are performed first by local supervisors and once later by staff in central office.

Verification of correct data entry is assured by using BLAISE system for data entry (commercial product of Netherlands statistics), where criteria for logical and consistency control are defined in advance.

Response rate

• Nobody at home: 2,8%
• Eligible person is not home: 2,8%
• Refusal : 32,79%
• Given up after a minimum of two visits: 0,82%
• Other (excluded after control): 0,29%
• Finished: 60,5%