Financial Development and Financial Inclusion

Source details

Target audience: Mid-level to senior officials from central banks and government agencies dealing with regulation of the financial sector.
Session No.: OL 24.106
Deadline passed
Location: Course conducted online
Date: January 1, 2024 - April 15, 2024 (15 weeks)
Delivery Method: Online Training
Primary Language: English
Presented by the Institute for Capacity Development.

Expected knowledge: basic knowledge of economics or finance.
Helpful but not required: Knowledge of econometrics.
Essential technical skills and equipment:
- Basic Microsoft Excel skills.
- Access to a computer with a reliable Internet connection and a Google Chrome web browserare essential.

Outlines the macroeconomic relevance of financial development and financial inclusion.
Begins with an analytical framework that defines the role of finance in the economy.
Reviews the conceptual and empirical literature on the impact of finance on macroeconomic performance and growth.
Addresses key policy issues to:
- Encourage financial development (market-enabling policies).
- Limit financial development’s potential destabilizing effects (market-harnessing policies).
Introduces financial inclusion as an integral dimension of financial development, noting that the discussion historically revolved around the concept and measure of financial depth.
Reviews:
- Indicators currently used to measure financial inclusion.
- The distinct macroeconomic impact of financial inclusion.
- The main policy strategies that have been pursued.

Identify a framework for financial market development and financial inclusion, and why they matter for economic growth and development.
Measure the degree of financial development and inclusion for a country or countries using a wide range of standard indicators and use benchmarking to compare a country to its peers.
Identify strategies and policies to support the development of financial intermediaries and capital markets in a country, considering initial conditions and links between the financial sector and the macroeconomy.
Understand the unique challenges SMEs face accessing finance; describe how financial intermediaries can better tailor their products to the needs of the SMEs.
Provide standard methodologies for managing risks associated with SME lending; evaluate how government policies can improve the lending environment for SMEs and understand the role of state banks and MDBs, including their role in mitigating risks.
Evaluate the benefits and costs of different financial inclusion policies and identify strategies to promote financial inclusion for households and micro-enterprises.
Understand various uses of technology in the financial sector (Fintech) and how they could be used to improve the efficiency and inclusiveness of financial services without generating financial instability.

Market-enabling policies to foster financial development.
Market-harnessing policies to contain destabilizing risks from financial development.
Measurement and benchmarking of financial development and financial inclusion indicators.
SME finance: product tailoring, risk management, and the role of public institutions (state banks and MDBs).
Financial inclusion policy trade-offs: benefits and costs for households and micro-enterprises.
Fintech applications: improving efficiency and inclusiveness while managing financial stability risks.