Analysis On The Development Of Inclusive Financial Development Level And Its Influencing Factors In Shandong Province

Due to the serious financial exclusion in the traditional financial system,it is difficult for small and micro enterprises and low-income people to obtain financial service support,which seriously restricts the sustainable development of finance.Based on this,the concept of inclusive financial development came into being.Its essence is that the financial system is going to provide appropriate and effective financial services to all sectors and groups of society with financial service needs especially for socially vulnerable groups such as small and micro enterprises,farmers,and low-income urban residents at an affordable cost based on the principle of equal opportunity and commercial sustainability in the future.In order to promote the development of inclusive finance in China,the party and the country attach great importance to it.The Third Plenary Session of the 18 th CPC Central Committee clearly stated that “developing inclusive finance,encouraging financial innovation,and enriching financial market levels and products”,it indicates that China has promoted inclusive finance to the level of the country's strategic level.In January 2016,the State Council released the “Plan for Development of Inclusive Finance Development(2016-2020)”,which determined the development direction of inclusive finance in China.Moreover,the party's report on the Nineteenth Congress clearly stated that we should continue to promote the reform of the financial system,improve the ability of finance to serve the real economy,and promote the healthy development of multi-level capital markets.The introduction of the above policies also shows our determination to promote the development of inclusive finance at this stage.The overall economic development in Shandong Province is stable,but there are still destabilizing factors and the pressure for transformation and upgrading is still large.The following issues are more prominent.The endogenous growth momentum of the economy is insufficient.Financial risks in some areas have been exposed.And then funds for small and micro enterprises,farmers,and other vulnerable groups have been strained.Therefore,based on the research perspective of Shandong Province,this paper selects 17 cities from 2009 to 2016 to measure and analyze the development level of inclusive financial development in Shandong Province.This will not only help to resolve the financial support issues in vulnerable areas such as small and micro enterprises in Shandong Province,provide inclusive financialservices for them.They are also conducive to the improvement of the inclusive financial system in Shandong Province,ensure the balanced development of inclusive finance across cities,promote the rational and effective allocation of financial resources,and then promote the economic development of shandong province and achieve regional coordinated development.The specific research contents and conclusions are as follows:First of all,the paper makes a thorough analysis of the present situation of financial development in Shandong Province by understanding the origin and connotation of inclusive finance,and then sorting out relevant theoretical foundations such as financial exclusion theory,financial deepening theory,and inclusiveness theory.It mainly includes three aspects such as the coverage of financial services in financial systems and the penetration of financial services and the development of financial infrastructure.The following conclusions are drawn:(1)The development level of the banking industry and the insurance industry in Shandong Province is relatively high,and the number of financial service outlets and employees is increasing year by year;(2)The demand for financial services from“three rural”ares and small and micro enterprises is getting higher and higher.It is very significant to continuously promote the development of inclusive finance;(3)In the face of increasing demand for financial services,the People's Bank of Shandong and various financial institutions have further strengthened the construction of financial infrastructure.Secondly,on the basis of referring to calculation methods of inclusive financial index at home and abroad,the paper selects the density of financial institutions and employees,the proportion of loans involving agricultural loans and the domestic small and micro enterprise loans,the level of deposit balance and loan balance and premium income,the balance of per capita savings and per capita loan and other indicators to build an evaluation system which can calculate the inclusive financial index(IFI)of various cities in Shandong Province according to the actual situation of inclusive financial development in 17 cities in Shandong Province.Through the index,we systematacially analyzed the development level of inclusive finance in 17 cities and four areas of Luzhong,Ludong,Lubei,and Lunan.We can see that remarkable achievements have been made in the development of inclusive finance in Shandong Province.Under the leadership of the provincial government,cities around the province have actively promoted the development of inclusive finance.However,the overalllevel of development is still relatively low,and there are serious imbalances in development.Then,based on the IFI measured in the previous section,an empirical analysis was made of the influencing factors of inclusive financial development in Shandong Province.Analysis mainly selects the following indicators include education level,government policy support,economic development level,urban-rural income gap,Internet penetration rate,information level,the level of asset investment,financial development efficiency to determine the positive and negative correlations of each indicator to the level of inclusive financial development in Shandong Province through panel data models.According to the regression results,it can be concluded that the improvement of education development level,the improvement of economic development level,the increase of Internet penetration rate,the increase of fixed asset investment,and the improvement of financial development efficiency are all significantly positive to the inclusive financial development index.They all have important roles in promoting the development of inclusive financial development in Shandong Province.The correlation between the urban-rural income gap is positive,but from the perspective of long-term development,narrowing the urban-rural income gap is more conducive to the development of inclusive finance.In the future,on the basis of the continuous improvement of the above-mentioned impacts,we will promote the deep integration of “Internet + Finance”,continue to promote government policy support,and improve the level of information so as to promote the development of inclusive finance in Shandong Province and help China to complete its construction Well-off society by 2020.Finally,on the basis of fully considering the present situation and influencing factors of inclusive financial development in Shandong Province,this paper proposes suggestions and measures to promote the development of inclusive finance in Shandong Province:(1)Promote the optimization of the functions and services of existing financial institutions,incorporate the insurance protection system into the inclusive financial system,and then improve the construction of inclusive financial infrastructure and the existing financing guarantee system.(2)Encourage residents to actively participate in financial knowledge training,provide a good education environment,improve financial education laws.(3)Strengthen the supervision of financial institutions and safeguard the rights and interests of consumers.(4)The government will increase support,optimize investment distribution,optimize regional financial structure,achieve balanced development,carry out exchanges and cooperation among regions,adjust the allocation of financial resources,and reduce the income gap between urban and rural areas.