Measure The Level Of Development And Influencing Factors Of Inclusive Finance In Henan Province

Inclusive finance is the concept first put forward by the United Nations at the microfinance annual meeting in 2005.It is an extension of microfinance.It is the development and transcendence of microfinance,and it aims to provide equal access to GSP(Generalized System of Preference)for all social strata.Improving the breadth and depth of financial services,lowering service costs,enhancing social welfare,and rationalizing the allocation of financial resources.Since its introduction,inclusive finance has attracted extensive attention at home and abroad.Although China introduced this concept relatively late,it has a rapid development momentum.In 2013,at the Third Plenary Session of the 18 th CPC(Communist Party of China)Central Committee,it was formally proposed that the development of inclusive finance and the encouragement of financial innovation are the direction of China's financial deepening reform,which signifies that China's inclusive financial development has entered a new historical period.In recent years,Henan Province has actively responded to the requirements of national policies,continuously promoted financial deepening reforms,innovated financial products and services,and achieved a series of achievements.However,in the process of deepening reforms,financial resources are more inclined to regions with higher levels of economic development.Financial services have a greater preference for customers with higher net asset values.The disadvantages of the financial system are increasingly evident.At the same time,poor areas and vulnerable groups often Unequal access to financial services is a departure from the essence of inclusive finance.Henan Province,as a large agricultural province with a relatively underdeveloped economy in the central region,has a relatively weak level of economic modernization,a wide range of poverty areas,and a prominent issue of “agriculture,rural areas and farmers”.Therefore,the study of Henan's inclusive financial issues will promote economic and social harmony in Henan Province.Sustainable development is of great significance.In this context,this paper measures the level of inclusive financial development in Henan Province and studies its influencing factors.The first part of the article briefly introduces the background and significance of the topic,the content and methods of the study,and summarizes the relevant literature at home and abroad.The theoretical analysis of inclusive finance in the second part of the article mainly includes the drawbacks of the traditional inclusive finance theory and the development philosophy of contemporary inclusive finance;then it elaborates on the related theories of inclusive finance.The third part expounds the current situation of the development of inclusive finance in Henan province from the aspects of demand,supply and policy environment.The fourth part of the article follows the principles of comprehensiveness,objectivity,and availability,combines the characteristics of Henan Province,builds an inclusive financial index system,and uses the IFI calculation method of the inclusive financial index to measure the provinces and cities in Henan Province and 2006-2017 inclusive financial development index and analysis of results.The fifth part of the article selects the factors that affect the development level of inclusive financial development in Henan Province,and establishes a panel data model to empirically test the influencing factors,and analyzes the correlation between the development level of inclusive finance and each influencing factor.In the final part of the article,based on the results of empirical tests,five specific aspects,from narrowing regional development gaps,raising residents' income levels,increasing Internet utilization rate,carrying out financial knowledge popularization education activities,and strengthening policy guidance,will address specific proposals for promoting inclusive financial development in Henan Province.From the results of the level measurement,we can see that in the longitudinal direction,inclusive finance in Henan Province develops in fluctuations,and overall it shows an upward trend.From a horizontal point of view,there are imbalances in the level of inclusive financial development in various cities,and there are large differences between regions.Local cities with higher levels of economic development and stronger overall strength have relatively high levels of development of inclusive finance.Through empirical analysis,it is found that there is a significant positive correlation between the development level of inclusive finance and the level of economic development,education,urbanization,Internet coverage,and government participation;there is a negative correlation between income growth of urban and rural residents.The faster the economy develops and the higher the level of urbanization,the stronger the agglomeration effect of financial resources,and the stronger the availability of financial services,the higher the level of inclusive financial development.The more backward the economic development and the greater the income disparity between urban and rural residents,the lower the participation of financial institutions and the lower the development level of inclusive finance.Therefore,encouraging economic development,narrowing the gap between the rich and the poor,and adjusting the dual urban-rural economic structure are the only way to promote inclusive financial development.