Research On Balancing Financial Inclusive Goals Of Rural Small-Sized Financial Institutions In Zhejiang Province

Rural small-sized financial institutions are the main supply of rural finance, saddled with the responsibilities of promoting the development of modern agriculture and rural economy and of enhancing farmers’ income levels.In order to expand the coverage of the target customers in rural areas, rural small-sized financial institutions should keep improving profitability and the ability to resist risks to achieve sustainable development.Given current economic and financial complexities and rising macro policy risks in China, how should rural small-sized financial institutions practice inclusive finance better and balance the two goals, which needs for seriously in-depth thinking.Firstly, starting with an overview of the theory, this thesis defines the concept of rural small-sized financial institutions, inclusive financial system and synergy targets, and summarizes the existing researches about the topic.Secondly, this thesis establishes the evaluation index system to measure to which degree that rural small-sized financial institutions can achieve dual goals, including evaluation of two aspects-coverage and institutional sustainability。And based on the relevant data during2007-2013, this thesis measures to which degree Zhejiang Rural Credit achieves two goals.Then, from four aspects of mechanism, products, services and system,this thesis analyzes how should Zhejiang Rural Credit further practice inclusive finance in order to achieve a better performance. Finally, this thesis proposes research implications including five aspects. Through the research, this thesis draws the preliminary conclusion:Since2007, the breadth, depth and quality of inclusive financial services have greatly improved, profitability and ability to resist risks continue to improve,so Zhejiang Rural Credit has achieved sustainable development. But in the last two years, economic and financial environment is becoming more and more complex, resulting in a great impact on the entire banking industry.To which degree the rising of the interest rate will influence the conditions of Zhejiang Rural Credit,this question requires further follow-up study.