The Study Of Effective By Financial Customer Protection To Financial Inclusive

It is very significant to deeply improve financial inclusion that makes modernfinancial service benefit more people and week areas of social and economicaldevelopment for promoting rural finance, narrowing the gap between urban andrural development and promoting social equity and justice. Financial inclusion isinseparable from the development of good financial consumer protection.Without effective financial consumer protect, the financial inclusion will lose itsdevelopment advantage. Research on the relationship between financial inclusionand financial consumer protect will contribute to enriching and developing thetheory of financial consumer protect and financial inclusion. Meanwhile, inChina's financial inclusion system just under the fledgling background, it is a hotissue of how to construct financial inclusion system from the perspective offinancial consumer protect on theoretical and empirical study.On the base of comprehensive analysis of financial inclusion theory and financialconsumer protect theory, innovatively using methods of econometric analysis,statistics analysis based on media reports and questionnaires, and cases study,the paper deeply studies the issues of financial consumer protect in the system offinancial inclusion in China from the view of theoretical and quantizationanalysis. The main study issues, positive result and innovative work are asfollows:1. Necessary theoretical analysis on the relationship between financial inclusionand financial consumer protect. Beginning with the analysis of macro, mesoand micro of financial inclusion framework, the paper focus on the analysisof characteristics of supply and demand in financial inclusion system.Combined with the necessary theoretical research on financial consumerprotect, the paper elaborates the importance of strengthening financialconsumer protect in financial inclusion system. After innovatively proposingthe lower inclusion and over-inclusion (false inclusion) and conduction pathfrom financial consumer protect to financial inclusion, the paper assumes theexistence of non-linear shallow “U”-shaped relationship between the degreeof financial inclusion and financial consumer protect.2. The empirical analysis of the impact of financial consumer protect tofinancial inclusion. The effective path from financial consumer protect tofinancial inclusion level is one of the difficulties of the study. Based on thetheoretical analysis, the paper confirms the “U”-shaped relationship betweenthe degree of financial inclusion and financial consumer protect by across-country empirical test using cross-sectional data.3. The paper uses statistics analysis to study the current situation of rightsdamage of financial consumer in China and proposes the significance tostrengthen financial consumer protect for developing financial inclusionsystem. Based on the statistics analysis based on media reports, the studypoints out that rights damage of clients exists in financial sectors in Chinaand the number of events become growing year by year, indicating that theexisting consumer protection measures can not meet the needs of fast growing financial needs and development of financial sector. Although China hasstarted to build financial consumer protection mechanisms, financialconsumer protect system still have some problems reflecting the followingfive areas: not incorporating financial consumer protect into the constructionof financial inclusion system, imperfect legal system and supervisionframework, weak of awareness and enforcement to protect financial clients,low level of financial literature overall. The deficiency of financial consumerprotect system restrains the development of financial inclusion, which resultsto the dualistic characteristics of coexist of over-inclusion in urban andless-inclusion in rural.4. Based on theoretical analysis and empirical test to propose relevantrecommendations. On the basis of advanced international experience, thepaper proposes that the financial consumer protection system should beconstructed from the following aspects: accelerating the improvement of legalsystem of financial consumer protect framework, improving the supervisionmechanism, perfecting multi-level handling mechanism for financialconsumer disputes, raising awareness of financial institutions regarding toprotecting consumers' rights, strengthening public financial literacyeducation and financial staff training. At the same time, more attention isneeded on avoiding new financial exclusion by over-protecting in the processof constructing financial consumer protect mechanism.