Research On The Development Level Of Rural Inclusive Finance And Its Influencing Factors In Gansu Province

Inclusive finance system is a kind of finance for the purpose of helping all social groups,including rural residents,the poor,and small and micro enterprises who are excluded from the formal financial system,for providing safe and efficient financial services with logical prices.In November 2013,the Third Plenary Session of the 18 th Central Committee of the Communist Party of China issues “Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform”,which firstly points out to promote inclusive finance to the national strategic level.In recent years,along with the deepening of rural reform and the strengthening of development-oriented poverty relief in Gansu Province,the financial support to agriculture is beginning to show results:new types of rural financial institutions develop rapidly,financial coverage and service level of rural areas increases year by year.However,the rural area in Gansu is still facing some problems,for example,limited financial services and product supply,not fulfilled need of rural financial service,the more outstanding problem about financial exclusion.Therefore,it is of great significance to promote the further development of inclusive finance in rural areas of Gansu in order to promote ruraleconomic development and deepen financial reforms.This dissertation firstly studies the present situation of rural inclusive finance in Gansu and proposes that there are still many problems unsolved in the rural inclusive finance’s development,for example,lack of collateral or guarantee,shortage of financial awareness,not well-developed financial institutions,inadequate financial services and product innovation,imperfect financial risk compensation mechanism.Then,factor analysis and regression analysis are applied to measure and evaluate the level of rural inclusive finance in Gansu.The results show that: first,the level of rural inclusive finance in Gansu is generally low and the traditional financial institutions are still the main participators of rural inclusive finance;second,the development of rural inclusive finance in different regions of Gansu varies greatly due to the uneven development of different regions.Among them,the highest level of the development of rural inclusive finance appears in Lanzhou and Jiayuguan while the lowest appears in Longnan,Linxia,Dingxi and Gannan;third,the level of rural inclusive finance in Gansu is influenced by many factors and it is positively correlated with the income level of farmers,financial and agricultural development level,urbanization level,information technology level,traffic convenience while is negatively correlated with farmers employment level.Finally,on the basis of the findings above,several suggestions are put forward such as to improvethe rural inclusive financial needs,to expand the rural inclusive financial supply and to optimize the external policy environment.