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FDFIx

Financial Development and Financial Inclusion (FDFIx)

Apply online by April 1, 2025 Deadline extended

Session No.: OL 24.153

Location: Course conducted online

Date: May 1, 2024 - April 15, 2025 (50 weeks)

Delivery Method: Online Training

Primary Language: French

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    Target Audience

    Mid-level to senior officials from central banks and government agencies dealing with regulation of the financial sector.

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    Qualifications

    Participants are expected to have a basic knowledge of economics or finance. Knowledge of econometrics is helpful but not required. Basic Microsoft Excel skills and access to a computer with a reliable Internet connection and a Google Chrome web browser are essential.

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    Course Description

    This course, presented by the Institute for Capacity Development, outlines the macroeconomic relevance of financial development and financial inclusion. Beginning with an analytical framework that defines the role of finance in the economy, the course reviews the conceptual and empirical literature on the impact of finance on macroeconomic performance and growth. It also addresses key policy issues to encourage financial development (market-enabling policies) and limit its potential destabilizing effects (market-harnessing policies). The course introduces financial inclusion as an integral dimension of financial development—a perspective that has only recently received proper attention, as the discussion for many years revolved around the concept and measure of financial depth. The course reviews the indicators currently used to measure financial inclusion, the distinct macroeconomic impact of financial inclusion, and the main policy strategies that have been pursued.

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    Course Objectives

    Upon completion of this 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.
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