Research On The Development Level Of Rural Inclusive Finance In Henan Province

The comprehensive and healthy development of the financial department is the main driving force for sustained economic growth in a country and a region.The urban-rural dual economic structure has led to a certain extent of economic disparity in China.In order to solve the rural economic problems,Chinese government will vigorously develop inclusive finance and raise it to the national strategic position in recent years.Inclusive finance comes from the development of microcredit,which can promote the rational distribution of financial resources,alleviate the unbalanced situation of urban and rural economic development,and be conducive to the overall development of the economy and society.The economy in Henan Province is less developed comparing to other provinces in the central region.Besides Henan province has a large rural population and a large rural area.It is significant to carry out the relevant research on inclusive financial issues in such a large agricultural province.The research models in this paper as follows: Firstly,according to the research background,the research purpose of the essay is clarified,and the innovations and deficiencies in this research are pointed out as well.and this paper expounds the meaning of inclusive finance and its related theories,and sums up the research results of domestic and foreign scholars on different angles of inclusive finance.Secondly,the status quo of the development of inclusive finance in rural areas of Henan province is introduced from the perspectives of supply and demand.It is found that farmers' demand for loans is low and is usually used to purchase means of production,so their capital demand is cyclical.Traditional financial institutions often do not have appropriate financial products to meet the financial needs of rural economies.In recent years,rural cooperative financial institutions and new types of financial organizations have developed rapidly,and the financial supply situation in rural areas has improved,but the coverage of large commercial banks in rural areas is low and the degree of settlement is not deep enough.Its traditional business model and loan procedures can not provide farmers with the required funds efficiently.In recent years,the cooperation between the government and banks has increased the range of rural financial products,but the substantive innovation is not enough.Then,the paper puts forward three prominent problems: the lack of effective demand in rural economy,the limited function of rural financial institutions in supporting agriculture,and the need to improve the external environment.For the successful cases of the development of inclusive finance in Henan Province,this paper enumerates the innovative thinking of the pilot district of inclusive financial reform in Lankao County,and actively explores the way of development of "one platform,four systems".Using the "Internet" thinking to improve the efficiency of information delivery,expand the financial coverage,and establish and improve the universal credit,credit construction,risk prevention and control,financial services,four systems,After a year of development,all the indicators of financial development have been significantly improved;The practice of inclusive finance in Lushi county promotes the economic development of the region from four aspects: the development mode,the construction of credit system,the policy guidance,and the expansion of the coverage of financial services.The representative practice of "Lu's model" is presented.Through the analysis of typical cases of inclusive finance development in Henan Province,we can find the common ground and influencing factors of its success,which is helpful to the analysis of the factors influencing the development level of rural inclusive finance in Henan Province in the later part of the article and the suggestion of optimizing the development level of rural inclusive finance in Henan Province.Furthermore,the author illustrates the factors which can influence the inclusive finance in rural areas of Henan province.By selecting the rural economic development level and the gap of incomes between rural areas and cities as the explanatory variables to carry out the regression.Based on the measurement of inclusive financial level in rural areas of Henan Province from 2005 to 2017,the results show that the IFI(Index of Financial Inclusion)index in this area generally show an upward trend,and there is a small fluctuation in the middle.Among them,due to the reform of township institutions in 2005-2006,the number of employees and outlets of rural financial institutions decreased significantly,and the IFI index decreased somewhat.From 2008 to 2010,the price drop of agricultural products in the international market affected by the financial crisis increased the uncertainty on the supply and demand situation of domestic agricultural and sideline products market.At the same time,the IFI index did not increase significantly without policy support.The influencing factors of inclusive Finance in Rural areas of Henan Province Research,select the level of rural economic development,income gap between urban and rural areas as the explanatory variables for multiple regression,the results show the degree of rural economic development,the degree of rural road construction,The ratio of per capita consumption to income is significantly related to the development level of rural inclusive finance.Finally,according to the successful experiences and empirical results of Lankao County and Lushi County,some suggestions are put forward to strengthen the construction of infrastructure,perfect rural credit system,enrich rural financial products and expand rural financial services,and optimize the external environment of rural finance.