Financial Development and Financial Inclusion

Source details

Training Program offered by the Institute for Capacity Development, IMF.
Target Audience: Mid-level to senior officials from central banks and government agencies dealing with regulation of the financial sector.
Delivery Method: Online Training.
Primary Language: English.

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

Outlines the macroeconomic relevance of financial development and financial inclusion.
Begins with an analytical framework defining the role of finance in the economy.
Reviews conceptual and empirical literature on the impact of finance on macroeconomic performance and growth.
Addresses policy issues to:
- Encourage financial development (market-enabling policies).
- Limit potential destabilizing effects of financial development (market-harnessing policies).
Introduces financial inclusion as an integral dimension of financial development and contrasts it with prior emphasis on financial depth.
Reviews:
- Indicators currently used to measure financial inclusion.
- Distinct macroeconomic impact of financial inclusion.
- Main policy strategies pursued to promote inclusion.

Upon completion of the course, participants should be able to:

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.