Financial Services In Rural Areas Research Articles

Research on the Innovation and Development of the Internet of Things Forestry Carbon Sink Model from the Perspective of Digital Village

The integrated development of forest carbon sinks and the digital economy can enhance both the rural industrial system and the level of economic development, ensuring the construction of digital villages. However, several challenges arise in actual development. The shortage of financial services in rural areas makes it arduous to meet the demand for industrial upgrading. The forestry carbon sink sector of the Internet of Things is in its initial phase and requires further improvement and support. Hence, it is imperative to enhance the appropriate policies and institutional framework to reinforce the construction of digital villages. This involves strengthening the management proficiency of the digital village and improving the financial channels of the Internet of Things forestry carbon sink industry. It is also crucial to guide the development of the rural digital economy industry through proper policy formulation.

Does county financial marketization promote high-quality development of agricultural economy?: Analysis of the mechanism of county urbanization.

China's agricultural economy has been hindered by insufficient accumulation of agricultural capital and credit constraints. It is worth investigating whether China's county financial marketization reform policy can alleviate these constraints and promote high-quality development of the agricultural economy (HQDAE). This paper presents an empirical analysis of the impact of county financial marketization reform on the HQDAE, based on county panel data. The focus is on the mechanism of county urbanization in the above relationship. The results show that county financial marketization has a significant non-linear impact on the HQDAE. Specifically, it has a 'U-shaped' impact on the overall growth of the agricultural economy and an inverted 'N-shaped' impact on the quality improvement of the agricultural economy. Secondly, the relationship between county financial marketization and the HQDAE is influenced by a threshold effect based on the level of county urbanization. As the level of county urbanization increases, the promoting effect of county financial marketization on HQDAE also increases significantly. Additionally, county financial marketization helps to promote county urbanization and accelerate urban-rural integration, which in turn leads to HQDAE. The research in this paper suggests that county-level local governments should promote a differentiated county financial system. In the early stages of financial market-oriented reform, the government should enhance the capacity of financial services in rural areas through tax breaks, policy incentives, and other measures to prevent financial leakage from agriculture. In the later stages of financial marketization reform, the government should strengthen financial supervision to prevent financial resources from being diverted from industry to capital. Moreover, to achieve the HQDAE, it is necessary to promote county financial market-oriented reform and accelerate the construction of county urbanization. This will help break the dual economic structure of urban and rural areas and promote the flow of financial capital, technology, and human capital from county cities to rural areas.

Nature of Rural Women’s Financial Exclusion in Zimbabwe.

Most rural women in the developing world are financially excluded from the formal financial sector. The purpose of this paper is to give an overview of rural women’s financial exclusion in developing nations. Causes of rural women’s financial exclusion is discussed. This helps governments, agro-based companies, banks and development partners to understand the extent of rural women’s financial exclusion so that measurements to address such issues can be made. A desk research was used to carry out the study. Most literature show that rural women in Zimbabwe do not have the Know Your Customer (KYC) requirements needed by banks and financial institutions to open bank accounts and access loans for income generating projects. Banks do not want to relocate to rural areas because rural women are not an attractive clientele due to the feminisation of poverty rampant in rural areas. In most developing countries, just as is the case in Zimbabwe, there is a bias towards urban areas in the financial sector. Rural women do not own the acceptable collateral. Men own most of the acceptable collateral. There are also gender inequalities in the access to financial services in rural areas besides women constituting the largest population in world’s rural areas.

Research on the Development Level and Differentiation of Rural Digital Inclusive Finance under the Background of Common Prosperity

Under the background of common prosperity, inclusive finance is facing new opportunities and challenges, and the active promotion of digital inclusive financial services in rural areas in China is of great significance for exploring the path of coordinated improvement of the development level of rural digital inclusive finance in various cities in Jiangxi Province, so as to comprehensively promote rural revitalization and solidly promote common prosperity. Based on the digital inclusive financial development data of 100 county-level districts in Jiangxi Province from 2014 to 2020, the results show that from 2014 to 2016, the overall development level of rural digital inclusive finance in various cities in Jiangxi Province has improved greatly. The development gap of rural digital inclusive finance in different cities has narrowed, but the development imbalance between regions is obvious. The increase in the depth of use is mainly limited by the dual dimensions of coverage breadth and digitalization. Based on the above conclusions, relevant policy suggestions are put forward from the aspect of development level, such as opening up sources and reducing expenditure, coordinating development to improve the radiation effect of developed regions, and capital market construction.

Technical Efficiency of Rice Production in the Upper North of Thailand: Clustering Copula-Based Stochastic Frontier Analysis

This study examines the efficiency of rice production in Thailand, especially major rice, which is the main crop of farmers in all regions of Thailand and is still a pressing issue. Analyzing technical efficiency by using the appropriate analytical tools inevitably brings about determining the correct production efficiency measures. In this study, we applied the K-Means algorithm and copula-based stochastic frontier model to cluster farmer groups in order to find the different factors that impact the group, and to relax the assumption of the two components of random error, which is that they are independent to each other; the correlation of the two components of random error is also represented by the estimation of copula. The findings from the K-Means clustering algorithms applied in this study indicate that the production frontiers can be divided into two frontiers, with the number of farmers under the frontiers of such production differing from the number of farmers collected in each area. The production frontiers were obtained with 591 farmers under the first production frontier and 65 farmers under the second. In addition, the results reflected a correlation between the two error components U and V. This suggests inefficiencies and zero-mean, and that the symmetric error is not independent of each other. The findings from the application of the copula-based stochastic frontier production function models indicate that land, cost of chemicals, and labor inputs have significant positive effects on the mean output of major rice in both groups of farmers. Therefore, the results of this study indicate that the financial services in rural areas should be continuously promoted by governmental policy, particularly via agricultural loans, to rural people since the utilization of inputs affects the quantity of rice produced. Timely loans should be encouraged.

How does financial literacy impact on inclusive finance?

Inclusive finance is a core concept of finance that makes various financial products and services accessible and affordable to all individuals and businesses, especially those excluded from the formal financial system. One of the leading forces affecting people's ability to access financial services in rural areas is financial literacy. This study investigated the impacts of financial knowledge on financial access through banking, microfinance, and fintech access using the Bangladesh rural population data. We employed three econometrics models: logistic regression, probit regression, and complementary log–log regression to examine whether financial literacy significantly affects removing the barriers that prevent people from participating and using financial services to improve their lives. The empirical findings showed that knowledge regarding various financial services factors had significant impacts on getting financial access. Some variables such as profession, income level, knowledge regarding depositing and withdrawing money, and knowledge regarding interest rate highly affected the overall access to finance. The study's results provide valuable recommendations for the policymaker to improve financial inclusion in the developing country context. A comprehensive and long-term education program should be delivered broadly to the rural population to make a big stride in financial inclusion, a key driver of poverty reduction and prosperity boosting.

Innovative Application of Internet Finance in Rural China

The rapid development of Internet technology in recent years has laid a good foundation for the application of financial services in rural areas. However, due to the lack of supply and poor cognitive environment, the application of Internet based financial services has encountered difficulties in rural areas. This paper puts forward countermeasures to optimize the development of Internet finance, hoping to promote agricultural production, improve not only farmers’ lives but also rural development.

Сельскохозяйственная кредитная потребительская кооперация в Уральском регионе: текущее состояние, меры по развитию

Abstract. The study of regional aspects of the development of agricultural credit consumer cooperatives (ACCC) is an urgent agenda for the growth of the agricultural economy, ensuring the availability of financial services in rural areas. The purpose of the study is to assess the current state of agricultural credit consumer cooperatives in the Ural region. Methods. A systematic approach was applied using economic, statistical and analytical methods. The theoretical basis of the study was the publications of modern domestic and foreign scientists on the economic, institutional aspects of the formation, functioning and development of agricultural credit consumer cooperatives. Results. The dynamics of development of the Ural regional sector of the agricultural credit consumer cooperation industry is considered. The peculiarities of the ACCC of the Urals are noted, the constituent entities of the Russian Federation are identified, in which the highest rates of reduction in the number of ACCC are observed. Barriers to the development of the cooperation industry in the Ural region are outlined. The role of regional government bodies in supporting the Ural ACCC in the framework of the implementation of state programs for the development of agro-industrial complexes is revealed, the areas of concentration of the largest ACCC are identified. The assessment of the market strategy of the Ural ACCC in the modern conditions of activity restrictions is given. The paper notes that the determining factor in the formation of a single mechanism for the implementation of the state policy of the industry in the regions is the development of regional target programs for the development of cooperation, representing a set of planned activities, interrelated in terms of tasks, timing of implementation, executors and resources. The directions for supporting the industry were noted, including measures to deregulate the activities of the ACCC. The theoretical significance of the study is the development of approaches to a set of measures for the development of the ACCC. The practical significance of the study lies in the formation of possible future studies of the management of the ACCC in the conditions of remote channels for the provision of financial services, expanding their range. Scientific novelty. Substantiated measures that allow to form a modern system of agricultural consumer credit cooperation in the regions.

Role of Small Finance Banks in the Inclusive Growth of our Economy

It is estimated that globally over 2.5 billion people are excluded from access to financial services of which one third is in India. Though the reach and scope of banking have thus increased, the huge demand for financial services remains insatiate. It is a matter of concern that even with 150 domestic commercial banks comprising 19 Public Sector Banks, 20 Private Sector Banks, 44 Foreign Banks, 4 Local Area Banks, 56 Regional Rural Banks and over 2,700 Co-operative Banks operating in the country, just about 40 percent of the adults have formal bank accounts1.To widen the scope of the banking sector reforms, the Centre focused on financial inclusion, digital banking, and better risk management. Various initiatives have been taken by the Reserve Bank of India for strengthening financial inclusion. One such initiative is the issue of Differentiated Banking Licenses to financial institutions to convert themselves into either Payment Banks or Small Finance Banks.RBI issued in-principle approval to start 11 Payment Banks and 10 Small Finance Banks. Financial inclusion plays a major role in the inclusive growth of the country. The growth of our economy is dependent on the growth of rural India. The availability of quality financial services in rural areas will enable a large number of rural households to fund the growth of their livelihoods. The present paper focuses on the study of Small Finance Banks and their role in promoting financial inclusion in India.

Review Paper on Financial Inclusion-The Means of Inclusive Growth

Financial inclusion plays a major role in inclusive growth of the country. It is estimated that globally over 2.5 billion people are excluded from access to financial services of which one third is in India. The origins of the current approach to financial inclusion can be traced to the United Nations initiatives, which broadly described the main goals of inclusive finance as access to a range of financial services including savings, credit, insurance, remittance and other banking / payment services to all 'bankable' households and enterprises at a reasonable cost. In India, financial inclusion first featured in 2005, when it was introduced by Dr. K.C. Chakrabarty, the Chairman of Indian Bank. Mangalam Village becomes the first village in India where all households were provided banking facilities. The availability of quality financial services in rural areas is extremely important for the growth of the economy as this will enable the large number of rural households to fund the growth of their livelihoods. The growth of the economy is dependent on the growth of the rural market in the country. Therefore greater financial inclusion in these segments is imperative. The main objective of this study is to review various papers on the how financial inclusion serves as a means of inclusive growth and to study the initiatives taken by Government and Reserve Bank of India for strengthening financial inclusion in the country. The study is based on secondary data collection. Reserve Bank of India's vision for 2020 is to open nearly 600 million new customers' accounts. The government should encourage the banks to adopt financial inclusion by means of financial assistance, financial literacy, advertisement, awareness program, etc. to achieve the aim of 11th plan of Inclusive Growth.

Access to financial services in rural areas of Punjab

The availability of quality financial services in rural areas is extremely important for the growth of economy as this enables a large number of rural households to meet their financial needs. Despite the efforts by government, a large proportion of India's rural population has limited or no access to financial service. This paper analyses access to formal and informal financial services in the rural areas and the level of satisfaction with respect to formal and informal financial services. Survey was carried out in ten villages of district Ludhiana in Punjab and it was found that the most significant factor for selecting informal financial services over formal financial services was easy availability of finances followed by negotiable rate of interest, easy access, personal attention and no need for documentation. Majority of the respondents still use the financial services for basic purposes like savings and fulfilling their social obligations like marriage of their children etc. The respondents were aware that finances were available at much lower costs from formal financial service providers like banks and yet they preferred services of money lenders.

Rural Banking: The Case of Rural and Community Banks in Ghana

This case study describes the history and business model of the Rural and Community Bank (RCB) network in Ghana, analyzes its performance, identifies key issues, and makes recommendations on the way forward. The study analyzes the service delivery and financial performance of the RCBs. Before the establishment of RCBs in the late 1970s and the subsequent expansion of other service providers into rural areas, access to institutional credit for farm and nonfarm activities was scarce. The main sources of credit were moneylenders and traders that charged very high interest rates. In many rural communities, secure, safe, and convenient savings and payment facilities hardly existed. The first RCB was established in a farming community in the central region of Ghana in 1976. Rural communities showed tremendous interested in the community ownership and management features of RCBs, and by 1984 the number of RCBs reached 106. The introduction of a check payment system for cocoa farmers also spurred the establishment of local banks in many communities. The financial performance of many RCBs started to decline, however, for several reasons, including a drought that affected the country in 1983, weak governing ability, conflicts within boards of directors, and ineffective management in many RCBs. By the end of 2008, 127 RCBs were in operation with a total 584 service outlets. RCBs are regulated by Ghana's central bank, the Bank of Ghana, and thereby form part of the country's regulated financial sector. RCBs are the largest providers of formal financial services in rural areas and represent about half of the total banking outlets in Ghana.

Reaching Rural Areas with Financial Services: Lessons from Financial Cooperatives in Brazil, Burkina Faso, Kenya, and Sri Lanka

This paper presents four cases of financial cooperative networks in developing countries with significant rural outreach. The four cases are SICREDI (Sistema de Cooperativa de Credito) in Brazil, SANASA in Sri Lanka, RCPB (Reseau des Caisses Populaires du Burkina) in Burkina Faso, and KERUSSU (Kenya Rural Savings and Credit Cooperative Society Union) in Kenya. These cases represent examples of FC networks with significant outreach in rural areas, but operating in widely varying economic contexts. Access to financial services contributes to rural development and poverty reduction by promoting income-enhancing and vulnerability-reducing investments, enabling better management of cash flows and risk, and facilitating remittances. However, financial access is limited in most rural areas in developing countries because of high transaction costs and risks attributed to low levels of economic activity, poor infrastructure, high levels of production and price risks in agriculture, and poor public policies, such as interest-rate caps and debt write-offs. Through a case study approach, this paper attempts to answer such questions as: Can FCs provide financial services in rural areas in developing countries and still be profitable? Do FCs provide services to low-income clients? How does the regulatory environment affect FC performance? How does the business model of FC networks affect FC performance?

Vietnam rural financial market- Fact dianostics and the policy implications for rural development of Vietnam

The development of Vietnam rural sector has been given attention by different orientations and policy frameworks, of which rural finance is the key tool, notably the Decree 41 on cred- it for rural sector. The Vietnam rural financial sector has been growing and making significant contribution to its rural development by a rapid expansion of outreach and available fund sources. However, there have been remaining problems that are very likely to hinder the sector from its further development. Such problems are: (1) there is a lack of responsive and adequate financial services in rural areas; (2) a significant number of the poor households still do not have access to any microfinance services, to name a few. Thus, this paper is intented to focus on two main issues. The first is to analyze the causes of such problems, and the second is to pro- vide recommendations that are strongly expected to overcome such problems to enhance Vietnam rural development in the new decade with the Development Millenium Goal.

From Urban to Rural: Lessons for Microfinance from Argentina

The recent success of microfinance for the urban self‐employed contrasts with decades of failure on the part of public development banks for small farmers. This article describes the ways in which rural microfinance organisations have tried to adapt the lessons of urban microfinance to manage the risks and control the costs of the supply of financial services in rural areas. It then asks whether the lessons of urban microfinance are likely to apply in the poorest rural areas of Argentina. The article concludes that microfinance is unlikely to improve access to small loans and small deposits for many of the rural poor in Argentina; distances are too great, farmers too specialised, and wages too high. Improved access depends not on targeting loans by government decree but on strengthening institutions that support financial markets.

RETAIL RURAL FINANCE IN SOUTH AFRICA: FROM POLICIES TO PRACTICE

In South Africa a recent government study laid the foundations for improving access to financial services for rural people. More is however needed than simply stating the policies. It is argued that policies do not differentiate target groups adequately. This can result in inefficient implementation of policies. The concept of a broad range of institutional possibilities to improve access to financial services, none of which specifically provides a conclusive model, is considered to be realistic. The idea is to muster this range of possible forms into a co-ordinated effort to increase access to financial services for rural people in all rural areas. This paper emphasises the reality of the situation when choosing policy directions. NGOs, commercial banks and the Post Bank do not hold the primary key to improving access to financial services in rural areas in South Africa. Several studies discussed the broad range of possible institutional forms in the rural areas of South Africa. The role of decentralised financial systems has not been the focus point of any of these studies. It is argued that fertile ground exists in South Africa for decentralised financial systems to address access problems at the local level. Decentralised systems also cannot be the solution to all intermediation problems. A multi-pronged approach is proposed, harnessing all institutional forms into a comprehensive strategy.

Rural banking markets and holding company entry

This paper studies the process of multibank holding company entry into rural banking markets. A logit analysis indicates holding companies tend to be attracted to larger, growing, relatively less concentrated markets. These results can be used to assess the degree of potential competition in particular rural markets. A forecast of entry between 1981 and 1983 indicates that recent financial deregulation and the agricultural recession have not yet had a significant impact upon the process of entry. Since many rural markets appear to be unattractive, this raises an issue concerning the availability of convenient and modern financial services in rural areas.

Rural financial markets in low-income countries: Recent controversies and lessons

Recently some researchers have criticized traditional agricultural credit policies in low-income countries. This article identifies the major points of controversy between traditional views and these new views and also summarizes the primary lessons learned from these controversies. Savings mobilization, more flexible interest rate policies, less loan targeting, and greater emphasis on improving the quality of financial services in rural areas are new views that are emphasized.