| The phenomenon of financial exclusion (FE) exists generally in the world, especially in developing countries. China as the largest developing country is also facing serious "FE problem". The FE of rural areas and small and micro businesses (SMBs) are two specific forms of China’s FE problems.Firstly, this thesis lays a theoretical foundation through the analysis of theories, such as financial development, transaction cost, credit rationing,and asymmetric information. Then this thesis analyzes the background of China’s FE from the perspective of the global commercial banking business strategy and China’s financial reform process; On this basis, this thesis analyzes the current situation of China’s FE, and elaborates the urban-rural difference and regional difference of China’s rural FE. At last, this thesis lists the current financing difficulties faced by China’s SMBs.Then this paper studies the general formation mechanism of financial exclusion. Through the analysis of the market width of financial services, we believe that the economies of scale and "market conversion cost" are the determinants of the financial institutions’market width as well as customer choice; Based on the condition of symmetric information and asymmetric information in financial service,we discuss the equilibrium analysis of the financial availability and believe that the operating efficiency of financial supply, the behavioral characteristics of the demand side, and the external financial institutional constraints are all the influencing factors of financial availability.After our research of the formation mechanism of FE in general, this thesis further analyzes the particularities of China’s financial exclusion and elaborates the restriction of financial market expanding width from the overall view. Then, we give a detailed analysis of the financial exclusion of China’s SMBs and farmers’ particularities, and believe that the current financial system environment, especially the control of interest rate policy prevents the SMBs from meeting the reasonable demand for capital. Under the urban-rural economic system, farmers’income growth is lack of power and the low yield of our rural market reduces the farmers’effective financial demand; Furthermore, this thesis discusses the necessity to accelerate the Market-oriented interest rate reform from the perspective of policy synergies.Finally, this thesis gives some feasible policy suggestions to crack China’s current financial exclusion from two aspects. On one hand, the government should strengthen the financial system construction to improve financial ecological environment; On the other hand, the government and financial institutions should promote the mechanism construction in order to build inclusive financial system. |
