Research On The Rural Financial Inclusion Evaluation In China

With the deepening progress of China’s reform of the rural financial system, thefinancial development of the rural areas in China has made considerable progress. Bythe end of2011in China, there are10provinces have achieved full coverage of thetownship financial services institutions and30provinces have achieved full coverageof the township basic financial services. A basic framework that various types offinancial agencies cooperate with each other while financial system in rural areareinforces each other has initially formed. Savings service in rural areas has beenbasically satisfied. The multi-level credit markets are gradually formed. But theproblems of the development of China’s rural finance are still very prominent: thelimited and uneven distribution of financial outlets in rural areas, the outflow of ruralcapital, the farmers’ long standing problem of “loans difficulty”, the inadequatesupply of financial services, the imbalance between supply and demand and theweakened financial support of rural economic development. Thus how to enhancethe inclusion of rural financial development in order to provide equal financialservices access to rural disadvantaged groups is one of the most important goal ofrural financial system in China, but also the key aspect of the concept of inclusivegrowth.Based on the theory of inclusive growth and financial breadth, the meaning andscope of China’s rural financial inclusion are defined from the angles of the mainsupply, demand and regulatory bodies. On this basis, an evaluation of rural China’sfinancial inclusion status in2006-2010is carried out under the evaluation indexsystem which consists of three dimensions, namely the premise, the process and theresults of the rural financial inclusion, using the Fuzzy Complex Evaluation Method.As is shown in the result, China’s rural financial inclusion is in basic inclusivesituation, with the index of financial inclusion of2.7839.To make further research, the factor analysis is conducted to analyze the regionaldifferences of rural financial inclusion. As can be seen, the rural financial inclusionshows a typical shape of the pyramid. The provinces of relatively high level offinancial inclusion are basically in the eastern coastal areas, while the rural inclusiondegrees of majority of the central and western regions are still low. Considering theimpact that rural financial inclusion degree poses on the income of the farmers, there is a positive relationship between them, demonstrating that to enhance the level ofrural financial is also an important channel to promote farmers ’ income.Finally, the paper argues that, to enhance the degree of China’s rural financialinclusion, the key is to solve issues of the enthusiasm and sustainability of thefinancial institutions involved in the rural financial market. Government should givefull play to the role of guide and regulator, providing a good ecological environmentand policy environment for promoting rural financial inclusion.