Abstract
Inclusive finance is an important development direction in the future of finance. The development of inclusive finance in China’s rural areas has provided valuable experience as well as exposing the various limitations of sustainable development. One of the key reasons for such limitations is the existence of cooperative resistance from multiple parties in the finance system. In this study, relevant data from the World Bank Inclusive Finance Database 2011–2017 and the CBRC Website were selected to analyze the current development level of inclusive finance in China in order to perform longitudinal time and horizontal international comparisons. The article summarizes the Chinese experience with inclusive finance and points out the dilemma of sustainable development. Then, based on the new perspective of synergy, the article breaks down financial institutions by type and provides an analysis of the cooperative resistance among the three major parties considering their behavioral motivations. Finally, we put forward the corresponding countermeasures to the dilemma of the sustainable development of inclusive finance in rural China by numerical simulations.
Highlights
After more than 30 years of rapid development since reform and opening-up, China’s financial market is at a low ebb under the macro background of the economy being hampered by trade wars and other factors
The third contribution is that this paper provides guidance for government departments and financial institutions, which is helpful for rural users to understand and support inclusive finance
Rural financial theory includes the theories of agricultural credit subsidy, rural financial markets, and incomplete competition [13,14,15]
Summary
After more than 30 years of rapid development since reform and opening-up, China’s financial market is at a low ebb under the macro background of the economy being hampered by trade wars and other factors. There have been some obstacles, such as the lack of innovation in the rural financial system [6], regional development imbalance, imperfect top-level design, lack of financial institutions, lack of targeted financial products and services, lack of financial knowledge, low penetration rate, the serious financial exclusion phenomenon, and the fragile financial ecological environment. These obstacles have led to the slow development of rural inclusive finance [7]. The third contribution is that this paper provides guidance for government departments and financial institutions, which is helpful for rural users to understand and support inclusive finance.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
