A Study On The Sustainability Of Inclusive Finance In China

Since it was first purposed by the United Nations in 2005,inclusive finance has enjoyed rapid growth in the world.In recent years,the sustainability of inclusive finance has become an important issue.At the same time,in the era of big data,the situation of institutional constraints and asymmetric information faced by the entire financial system has been eased,and the foundation for financial repression has been loosened.The global pattern of inclusive finance is facing the impact of internet economy and internet finance.In this context,the development of inclusive finance faces more opportunities and challenges for its sustainability.This paper aims at investigating the development and sustainability of inclusive finance in China and outlining the features and importance of inclusive finance in the context of the urban-rural dual structure and the urbanization process in China.This paper argues that the sustainable development of inclusive finance in China shows Chinese characteristics;it is related to the process of urbanization in China and is subject to the urban-rural dual structure.The sustainable development of inclusive finance in China has the following features:development stages to be improved,unbalanced development between the East and the West,and segmentation in financial markets.Based on these characteristics of the times,this paper conducted an FSS analysis on China's inclusive financial institutions,drawing the conclusion that the financial sustainability of China's Internet financial platforms is relatively good.The study of this paper also found that the the government's influence and control over inclusive finance in China is unique in the world,leading to the fast development of China's inclusive finance.Still,China's inclusive finance is troubled by the problems of poor supervision.Countries in Southeast Asia show different levels of development of inclusive finance.Among them,the Philippine's NGO "Center for Agriculture and Rural Development(CARD)" has enabled women in poverty-stricken areas to achieve economic independence and contributed to building a more stable social and economic base.Indonesia has adopted is the mode of providing inclusive financial services by state-owned banks.They have accumulated certain experience and lessons in the development of inclusive finance which are worth learning from.The innovations of this paper are as follows.First,the paper analyzed the financial data of China's current inclusive financial companies under the theoretical framework of the global financial inclusion system and reached reasonable conclusions.Second,the development of inclusive finance in China has its own particularities,such as the urban-rural dual structure,the advancement of financial technology,etc.This paper has combined these characteristics to ensure that the analysis of sustainability is of practical importance.Third,this paper compared the inclusive financial sustainability of China with that of two Southeast Asian countries with similar externalities in search of general characteristics and specific issues so as to arrive at effective conclusions and policy recommendations for the sustainable development of inclusive finance in China.Besides,the paper also provided a preliminary analysis of the preconditions and foundations of inclusive finance development in these countries,and compared their similarities and differences in regard to their applications for China.It should be admitted that this this paper's research has certain deficiencies.The Chinese government has served as a strong driver in the development of financial inclusion which is short but rapid.With the speed of economic development and government regulation,the development of inclusive finance in China is facing the uncertainty of the external environment.This paper did not analyze the sustainability of China's inclusive finance in the context of the Chinese system,but set the presupposition that the existing inclusive financial policies would maintain certain policy continuity.Therefore,the research may fail to analyze the sustainability of inclusive finance in regard to policy variables and long-term effectiveness as the proposed policy recommendations are unable to adapt to the changing policy environment.