Research On The Dynamic Mechanism Of Huishang Bank' Inclusive Finance

In recent years,China has strongly advocated the development of inclusive finance.This initiative was officially put forward in 2013 ‘The CPC Central Committee on Comprehensive Decided to deepen the reform of several major issues',thus opening a new stage in the development of inclusive finance in China.In 2015,in order to further promote the development of inclusive finance,the State Council issued the Plan for Promoting Inclusive Finance Development(2016-2020),which raised the issue of inclusive finance development in China to the level of national strategy,and at the same time made clear for the first time the guiding ideology,basic principles and overall objectives of inclusive finance development in China.At present,the development of inclusive finance in our country has entered the critical stage of ‘the last kilometer of the assault',but the characteristics of providing financial services for small and micro enterprises,‘agriculture,rural areas and farmers' and the poor have not changed significantly under the traditional mode.The commercial sustainability of inclusive finance in China is facing challenges,especially the lack of endogenous motivation for inclusive financial services provided by commercial banks.Firstly,this paper reviews the research results related to inclusive finance,sorts out and defines the relevant concepts and theories involved in the research,and further refines the operating conditions for commercial banks to develop inclusive finance dynamic mechanism based on incentive compatibility theory and economic mechanism design theory.After analyzing the current development situation of inclusive finance in commercial banks,it is found that the current development of inclusive finance in commercial banks has achieved certain results,but there is still a lack of motivation.Then,under the background of the current development of inclusive finance in commercial banks,this paper analyzes the development of inclusive finance in Huishang Bank,and holds that the current development of inclusive finance in Huishang Bank has a good momentum and results.Therefore,this paper analyzes the dynamic mechanism of Huishang Bank's development of inclusive finance from two aspects: external power and internal power.According to the research,the external driving force is the external driving force and macro influencing factors for Huishang Bank to develop inclusive finance,mainly including national policies,market demand,industry competition,public and media,etc.The internal driving force is the internal driving force for Huishang Bank to develop inclusive finance,mainly including the maximization of benefits,risk management ability,entrepreneurship and social responsibility.Clarify the relationship between internal and external power factors,analyze its operation mechanism,promote the individual power factors to form a joint force and strengthen communication and coordination with each other,reduce the conflicts and confrontation between power factors,and explore the operation mechanism of Huishang Bank's development of inclusive finance power mechanism.Finally,according to the operation mechanism of Huishang Bank's power mechanism to develop inclusive finance,and based on the principle of ‘strengthening positive power and weakening negative power',the power mechanism of Huishang Bank to develop inclusive finance is optimized from the aspects of strengthening the government's guarantee and guidance,coordination and communication among various departments,maintaining the market competition environment,enhancing the strength of small and micro enterprises,improving profitability,strengthening the level of risk management,cultivating entrepreneurship and enhancing the awareness of social responsibility.Some suggestions are provided to strengthen the power of Huizhou commercial banks to develop inclusive finance,and some references are also provided for commercial banks to better realize the high-quality development of inclusive finance business,helping China's inclusive finance to get through the ‘last mile'.