Financial inclusion

Promoting financial inclusion is a stated political goal in many countries, including among central banks. Central banks address financial inclusion in a variety of ways – through programming, international alliances, and as part of their formal legislative mandates. 

Exploring a more inclusive economy

Central Bank of the Future

Traditionally, central banks have served three policy functions – monetary policy, payments systems oversight, and financial institution supervision. CFLP explores how these core functions contribute to financial inclusion, poverty alleviation, and a more inclusive economy – and what could be improved.
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What might the Central Bank of 2070 look like? 

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Financial health comes about when people have day-to-day systems that enable them to build resilience and seize opportunities. It’s about being able to spend, save, borrow, and plan in ways that enable people to manage life’s ups and downs. While inclusion is primarily about getting people into the formal financial system, as measured by account ownership, financial health is the desired outcome.

Jennifer Tescher, President & CEO of Financial Health Network
Working paper

Nothing left to lose? Changes experienced by Detroit low- and moderate-income households during the Great Recession

The Financial Crisis and ensuing Great Recession caused enormous hardship for households. Using original datasets, we examine the effects of the recession on a population many might think had nothing left to lose: low- and moderate-income households in the Detroit metropolitan area. We find that the Great Recession in fact imposed significant costs on these households, reducing employment and assets and increasing hardships in a wide variety of ways. Our findings suggest the need for more robust safety net policies and financial services that can help cushion the blows from sharp reductions in incomes and assets.
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Working paper

Detroit Area Study on Financial Services: What? Why? How?

Leveraging U-M's groundbreaking Detroit Area Study, Michael Barr explores the financial services needs of low- and moderate-income households.
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