Inclusive Finance For The Financing Of Rural Enterprises

Based on the principle of "Efficiency first and fairness into account",it is a requisite at certain stage of market economy to develop Inclusive Finance and thus to achieve financial equity.Some argue that the profitability of the banking institutions will inevitably be adversely affected in the process of developing inclusive finance.Some banks therefore fear the negative effects and refuse to promote the development of inclusive finance.In fact,inclusive finance can also generate revenues and bring profits to banks.The success of JRCB is a good example.Jiangyin,being a typical representative of the "Sunnan model",has a highly developed economy and leads the nation on the level of Financial Inclusion.As a local bank,Jiangyin Rural Commercial Bank(JRCB)has contributed greatly to the development of the Inclusive Finance System,especially the financing of rural enterprises.According to the 2016's data,JRCB issued loans of 40.369 billion yuan to rural enterprises,accounting for 76.89%of the bank's total loans and more than 95%of the city's overall rural enterprise loans.While actively supporting rural enterprises,JRCB has also obtained its own rapid development and achieved a win-win situation.This article first pointed out the significance and the market potential of inclusive finance,and put forward the necessity of supporting rural enterprises.Then,the reasons for financing difficulties in rural enterprises were analyzed from three perspectives:the enterprise itself,financial institutions and social environment.The practice of JRCB in actively supporting the financing of rural enterprises was introduced in the following paragraphs,such as attaching strategic importance to rural enterprises,weakening financial statements,developing online financing channels and so on.On this basis,the paper presented the author's opinions on improving rural enterprise financing through the construction of Internet bank,the establishment of customer credit database and the launch of debt-equity combination financing,hoping to provide some inspiration in the practice of commercial banks.