The Experience, Dilemma, and Solutions of Sustainable Development of Inclusive Finance in Rural China: Based on the Perspective of Synergy

Abstract

Inclusive finance is an important development direction in the future of finance. The development of inclusive finance in China’s rural areas has provided valuable experience as well as exposing the various limitations of sustainable development. One of the key reasons for such limitations is the existence of cooperative resistance from multiple parties in the finance system. In this study, relevant data from the World Bank Inclusive Finance Database 2011–2017 and the CBRC Website were selected to analyze the current development level of inclusive finance in China in order to perform longitudinal time and horizontal international comparisons. The article summarizes the Chinese experience with inclusive finance and points out the dilemma of sustainable development. Then, based on the new perspective of synergy, the article breaks down financial institutions by type and provides an analysis of the cooperative resistance among the three major parties considering their behavioral motivations. Finally, we put forward the corresponding countermeasures to the dilemma of the sustainable development of inclusive finance in rural China by numerical simulations.

Can China’s digital inclusive finance help rural revitalization? A perspective based on rural economic development and income disparity

“…And increasing credit allocation to rural enterprises and farmers significantly promotes rural revitalization (Zhang, 2020). Under the impetus of urbanization, the flow of rural financial factors to urban areas has led to the problem of insufficient financial distributionsingle product variety, and small coverage in rural areas, which eventually lead to lagging financial development in rural areas (Su et al, 2019). The continuous iterative innovation of financial technology, represented by computer database analysis technology, has improved the achieve of inclusive finance, and providing technical feasibility for the dissolution of the defects of traditional finance.…”

Adaptation Strategies for Inclusive Finance: A Study of Chinese Commercial Banks

“…Scholars have raised doubts about the banks' ability to effectively balance commercial and social logics, with concerns about potential "mission drift," even when dual strategies, such as organizational separation of inclusive finance operations, are in place [8] . Over time, the commitment to inclusive finance policies and the pursuit of social responsibility by banks have increasingly been perceived as idealistic [9][10][11][12] .…”

Research on the Improvement Path of New Rural Cooperative Financial Legal System Based on Decision Tree Modeling

“…The main reason lies in the insecurities of the legal regulation of rural cooperative finance in China. Su, T. et al analyze the current situation of the development of HPF in China based on the World Bank's financial inclusion database from 2011-2017 and the relevant data on the website of the China Banking Regulatory Commission (CBRC), pointing out that the factors limiting the sustainable development of HPF are the multiple resistances of the financial system [9]. Yu, L discusses the symbiotic relationship between rural areas and finance, arguing that the financial reform in China's rural areas is not only limited by its relationship, arguing that financial reforms in rural China are based on vague and controversial concepts of rural areas, which also leads to greater sensitivity of rural finance to various concepts and representations when intervening in the space of the target [10].…”