Financial Development and Financial Inclusion (FDFI)

Course Details

Start: November 11, 2019

End: November 22, 2019

Course Number: SA19.05

Course Name: Financial Development and Financial Inclusion (FDFI)

Language: English

Location: New Delhi, India

Application Process: By Nomination





Target Audience

Mid- to senior-level officials from central banks and government agencies dealing with the financial sector and its regulation, giving preference to those applicants working on issues directly related to financial development and financial inclusion.


Participants are expected to have basic knowledge of economics or finance, or equivalent work experience. Knowledge of econometrics is helpful, but not required. Participants are strongly recommended to complete the online Financial Market Analysis (FMAx) and are expected to understand basic pricing models of debt and equity.

Course Description

This course, presented by the IMF’s 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.

Course Objectives

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

• Measure the level of financial development and inclusion for a country or countries by means of a wide range of standardized indicators.

• Identify the shortcomings of various indicators as well as the possible need to collect more detailed microeconomic data.

• Use a simple analytical model to predict the likely outcomes from different policies.

• Assess policy options and strategies for financial development and inclusion from a macroeconomic perspective, by identifying relevant tradeoffs and potential impediments.

• Formulate a policy strategy to support financial development in a country, taking into account initial conditions and links between the financial sector and the macroeconomy.