Research Of Countermeasure And Issue About Development Of Inclusive Finance For Xiangtan Rural Area

Difficult to obtain formal financial service problems in rural China seriously hampering the development of rural economy. Rural residents’ income growth rate is much lower than that of urban residents for lack of financial support. Furthermore,farmers could neither smooth consumption, nor avoid seasonal agricultural production risk through formal loan. All above help exacerbate the dual economic structure in China. After the concept of "Inclusive Finance" was put forward at the UN microfinance conference in 2005, the Communist Party of China proposed to encourage the development of “Inclusive Finance” in the report of “Decision on Major Issues Concerning the Comprehensive Deepening Reforms” during at the Third Plenary Session of the Sixteenth Central Committee of the CPC. The proposal aims to allow more people to enjoy financial services, then support for the development of the real economy better. Inclusive Finance has played an important role in helping to solve the problems in the rural, such as poverty, loan, etc., and improve the efficiency of resource allocation, promote social welfare at the same time. Whereas there are still some shortcomings, research on the inclusive financial problems of the rural areas in Xiangtan will not only help to understand the general problems of the development of inclusive financial development in the third or fourth-tier cities, but also provide reference for local financial institutions to develop Inclusive Finance.At the beginning, the paper sorts out literatures of Inclusive, which mainly concentrate on the Financial Exclusion, micro credit and inclusive finance, but less on the development of regional Inclusive Finance. After that it studies the origin and theory of Inclusive Finance, including the connotation, characteristics, functions and practicable methods, which lay the theoretical foundation for the following study. On the basis of the Inclusive Financial indicators systems respectively designed by the Alliance of Financial Inclusive(AFI), the World Bank and the Global Financial and Inclusive Financial partners(GPFI), the paper designs rural inclusive financial index system according to the specific situation of rural Xiangtan, then analyzes the present situation, problems and reasons of the development of Inclusive Financial in rural Xiangtan. As we all know, the practice of Inclusive Finance in China lags behind international, the paper studies three typical international financial practice case:Grameen Bank(Grameen Bank) micro credit model, Holland Rabobank(Rabo Bank)cooperation model, French Agricultural Credit Bank(Agricole Crdit) integratedservice model. From the successful models in these three cases, it summarizes some useful experience for development of Inclusive Financial in rural Xiangtan.Finally, combining the analysis of the preceding context, the following policy recommendations are put forward: First, financial institutions should provide farmers with comprehensive financial services and products. Second, establish a diversified financial service system, increase the supply of rural finance. Third, the government should actively participate in the construction of Inclusive Finance, through supervision, continuous positive incentives and other measures to promote the process of Inclusive Finance. At last, improve the ecological environment of financial inclusion.