Inclusive finance refers to the provision of appropriate and effective financial services for all social strata and groups with financial service needs at an affordable cost based on the requirements of equal opportunities and the principle of business sustainability. The business scope of Inclusive Finance includes small and micro finance, consumer finance, Rural Revitalization and poverty alleviation, so as to help the balanced and long-term development of society.
In terms of policy, the state has increased its support for Inclusive Finance. According to the development history of China’s inclusive finance policy, it has promoted the introduction of a series of monetary and credit, differentiated supervision and fiscal and tax policies, encouraged all kinds of financial institutions and market entities to strengthen inclusive financial services, and promoted commercial banks to dare to lend, be willing to lend and be able to lend in terms of system and mechanism. In terms of business scale, loans in Inclusive Finance maintained rapid growth. Student loans and entrepreneurship guarantee loans in the field of consumption continued to increase, and financial institutions’ investment in credit for small, medium-sized and micro enterprises and poverty alleviation loans in the banking industry continued to increase. In terms of interest rate trend, inclusive financial loans not only increased in volume and area, but also decreased in price. The loan interest rate of inclusive small and micro enterprises continued to decline.
The availability of inclusive financial credit by listed banks. There are four major participants in the inclusive credit market: large commercial banks, joint-stock commercial banks, urban commercial banks and rural financial institutions. In terms of the loan balance of inclusive small and micro enterprises, state-owned banks played a leading role, and the balance of inclusive financial loans of joint-stock banks and urban commercial banks continued to grow at a high speed. In terms of the number of inclusive financial loan customers, large state-owned banks have increased to varying degrees. In terms of loan interest rate, the financing cost of small and micro enterprises has decreased steadily through the transmission of financial institutions. In terms of credit risk and non-performing rate of Inclusive Finance, Huaxia, Zheshang and China Everbright Bank Company Limited Co.Ltd(601818) except China Minsheng Banking Corp.Ltd(600016) are lower than that of the whole bank.
In terms of scale, loans in the field of Inclusive Finance maintained a rapid growth, large state-owned banks still played a “leading role”, and the balance of inclusive financial loans of joint-stock banks and urban rural commercial banks continued to grow. The attribute of Inclusive Finance objectively determines that the related financial business has high risk, high cost and relatively low rate of return. Its risk mainly comes from the service objects of high-risk people. The development of Inclusive Finance is conducive to commercial banks to win policy dividends, improve interest margin, improve customer structure, disperse business risks and apply financial technology. Commercial banks actively promote the sustainable development of Inclusive Finance business. For example, Postal Savings Bank Of China Co.Ltd(601658) on the premise of adhering to the positioning of Inclusive Finance, they have basically achieved the sustainable development of Commerce.
According to the four characteristics of China’s inclusive finance development, we will speed up the legislative work in the field of Inclusive Finance, and the bank and the joint-stock system will take the inclusive finance business as the long-term business direction. Narrow the digital divide of Inclusive Finance, reduce the cost of small banking business, and alleviate the stratification of Inclusive Finance business. We will promote the development of inclusive financial interest rates towards low interest rates, continue to promote the pilot scope of inclusive financial supervision sandbox, strengthen inclusive financial supervision, and prevent the accumulation and delayed release of inclusive financial risks.
