Research On The Sustainable Development Of Rural Commercial Banks In Henan Province From The Perspective Of Inclusive Finance

The inclusive finance aims at solving a series of problems caused by the gradual expansion of the gap between the rich and the poor and the imbalance of financial resources allocation worldwide.The essential function of inclusive finance is to provide financial services for people of all social classes.In 2013,the Third Plenary Session of the 18 th Central Committee of the Communist Party of China officially proposed “development of inclusive finance” in the “Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform”.In 2016,the State Council issued the “Promoting Inclusive Financial Development Plan(2016-2020)”,which states that “allowing farmers,small and micro enterprises to obtain reasonable,convenient and safe financial services timely”.Since then,inclusive finance has developed rapidly in China.Inclusive finance itself is a kind of finance that helps disadvantaged groups.In today's rapid urbanization,rural areas,agriculture,and peasants are all in a relatively weak position.Therefore,rural inclusive finance is the development focus of inclusive finance.At present,the Central Committee of the Communist Party of China has paid more and more attention to the issues concerning “agriculture,rural areas and peasantry”.Rural inclusive finance has developed rapidly.Rural financial institutions have become more completed.Agriculture-related loans have grown significantly.Rural financial system and mechanism have been continually innovated.The important goal of Inclusive Finance is to realize the sustainable development of inclusive finance while expanding its coverage.Therefore,how to achieve the good and sustainable development of rural inclusive finance has become a major issue to be resolved.In order to explore and solve the problem of sustainable development of rural commercial banks from the perspective of inclusive finance,this paper is based on the current development situation of rural inclusive finance in China and a series of problems in promoting inclusive finance.The paper makes an in-depth analysis of the internal and external factors affecting the sustainable development of rural commercial banks from the perspective of inclusive finance.It also summarizes the connotation and motivation that affects the sustainable development of rural commercial banks as well as mechanism based on the analysis of cost-benefit method.The empirical analysis takes Henan province as an example.Henan,as a major agricultural province in China,is a typical representative of the sustainable development of rural inclusive finance.The empirical analysis exploring from the internal factors that influence the sustainable development of rural inclusive finance is not only the self-analysis of rural commercial banks on the basis of the cost-benefit,but also the major transformation of rural commercial banks from relying on the government to “transfusion” to their own “hematopoiesis”.The empirical analysis selects the OSS of 10 rural commercial banks in Henan Province from 2006 to 2017 as the explanatory variable,which is used to measure the sustainable development ability of rural commercial banks.The ratio of agriculture-related loans,return on equity,and income cost ratio are selected as the explanatory variable.The control variables on the one hand,based on internal factors,select the non-performing loan ratio,liquidity ratio,total assets,whether to reform,whether to carry out the e-banking,respectively,to measure the basic impact of the sustainable development of rural commercial banks Capability,profit growth ability,and innovative application ability;on the other hand,selecting per capita GDP,market interest rate index,policy support,three control variables to measure regional economic development level,macroeconomic policy,policy support and limited supervision for rural areas from the perspective of inclusive finance The impact of sustainable development of commercial banks.Through the construction of static panel model and dynamic panel GMM model,the impact of different factors on the commercial sustainability of rural commercial banks is analyzed in detail.Both theoretical analysis and empirical analysis show that the ratio of agricultural loans,return on equity,liquidity ratio and total assets and RGDP have a positive effect on the commercial sustainability of rural commercial banks while the non-performing loan ratio and cost-to-income ratio have a negative inhibitory effect on the commercial sustainability of rural commercial banks.At the same time,rural commercial banks should actively strengthen the use of innovative technologies,improve their own management level through innovative technologies,reduce related expenses in daily operations,and improve their sustainable development capabilities.Based on the above theoretical and empirical research conclusions,this paper provides policy suggestions for the sustainable development of rural commercial banks from four aspects respectively: improving the rural economic environment and promoting stable and orderly economic development;improving the management level of rural commercial banks and innovating their own development models;improving the application of innovative technologies;learn from successful experiences.