Research On Operating Mechanism Of Rural Inclusive Finance

The development of rural inclusive finance is a financial and economic problem,and today's economic development needs inclusive growth,which can promote inclusive growth and help China's economic restructuring and development mode transformation.The development of inclusive finance is also a social and political issues,which is a major cause of the social welfare of farmers.At present,China has made certain achievements in development of rural inclusive finance,rural financial coverage has improved significantly,personal credit system is also improving in rural areas constantly.However,it should not be overlooked that the development of China's rural inclusive finance is still inadequate.First,the problems of moral hazard and adverse selection caused by information asymmetry still exist,and the state of rural inclusive finance is not good.Second,the new rural financial institutions support agriculture is limited although it has developed rapidly in recent years.Most of the credit is still derived from rural credit cooperatives,and private lending has made rapid development in rural areas.Third,the problem of path dependency still exists in the development of rural inclusive finance.Therefore,as an important force to support the development of rural economy,the operating mechanism of rural inclusive finance has a strong research value.This paper analyzes the operating mechanism of rural inclusive finance,taking Shandong Province as an case.First of all,through field research,it analyzes the demand and supply situation of rural inclusive finance in Shandong Province,points out its problems in the demand and supply levels.Secondly,it explores the factors that affect the rural inclusive financial development in Shandong Province,analyzes the mechanism of action of the influencing factors from the theoretical level,and empirically verifies the theoretical analysis conclusions by constructing the econometric model.The empirical analysis is consistent with the theoretical analysis.Once again,in order to solve the dilemma of rural inclusive finance,this paper makes an analysis of the internal mechanism of development path of rural inclusive finance in-depth,and thinks that rural inclusive finance needs further development,which requires timely and moderate government intervention,which will help the traditional and new rural financial institutions embarked on an development path of inclusive finance.Should promote the new and traditional rural financial institutions complement each other,to achieve the two types of rural financial institutions docking,and ultimately promote development of rural economic jointly.New and traditional rural financial institutions should be based on their own organizational characteristics,play their own comparative advantages actively,reduce the cost of collaborative development;According to the development of financial and ecological environment,intervene in the development of private financial institutions moderately,guide the healthy and sustainable development of private finance,and promote it as an important part of the rural inclusive financial system.This paper puts forward the countermeasures and suggestions,which based on the theoretical analysis,empirical analysis and mechanism analysis of rural inclusive financial development and combined with foreign advanced development experience: First,the intensity and path of government intervention requires a reasonable planning.The government should strengthen the support of the poor;reduce the barriers to entry of new rural financial institutions;guide new rural financial institutions to embark on the path of reaching the double bottom lines,which are "reducing poverty" and "financial sustainability";guide the rural financial needs rationally,in order to resolve the dislocation of needs and supply in rural finance;strengthen regulation in rural financial market,so as to control of financial risks.Second,optimize the ecological environment of rural financial.So as to create a sound financial ecological environment for the healthy development of rural finance,we should promote the construction of the legal system and rural credit system actively,increase fiscal and financial policy support,accelerate the reform of the relevant measures to promote rural finance;Third,build an integrated system of rural inclusive finance.We should accelerate the transformation of traditional rural financial institutions,while promoting the health development of new rural financial institutions and rural private finance,and establish a sound rural financial system ultimately.On the basis of its own advantages,all kinds of rural financial institutions should realize the joint development with complement each other,to build the integrated system of rural inclusive finance and promote the development of rural social and economic jointly.Possible innovations in the paper include: this paper systematically studies the operating mechanism of rural inclusive finance,which including the action mechanism of influencing factors,the formation mechanism of the operational difficulties and the operating mechanism of the development path,by means of mathematical reasoning,economic analysis,field investigation,econometrics,game theory and institutional economics;analyzes the development situation of rural inclusive finance empirically,which based on the data of rural finance in Shandong province;demonstrates the conclusions of theoretical analysis,and points out the factors and their mechanism which affect the rural inclusive financial development in Shandong province;discusses the operating mechanism of development path of rural inclusive finance by using game theory method;puts forward the views of docking development of various types of rural financial institutions and promoting development of rural inclusive finance jointly;puts forward the reform ideas to optimize the structure of rural inclusive finance,according to the systematic analysis of framework of the paper.