Collected Essays of the Rural Institute of the Chinese Academy of Social Sciences: It is recommended to establish a multi-level and multi-type inclusive financial institution system

Recently, "From Microfinance to Inclusive Finance: A Collection of Commemorative Essays on the 25th Anniversary of the Development of Microfinance in China" was jointly released by the Institute of Rural Development of the Chinese Academy of Social Sciences, the China Association for the Promotion of Economic Exchanges in Counties and Towns, the China Microfinance Alliance and the China Social Sciences Press. Photo by Wang Deru

Beijing, November 17 (China News Network) (Reporter Jiang Tao) "From Microfinance to Inclusive Finance - Review and Prospect of the 25th Anniversary of the Development of Microfinance in China" (hereinafter referred to as the "Anthology") pointed out that it is recommended to promote the establishment of a multi-level and multi-type inclusive financial institution system, especially the development of public welfare or non-profit financial organizations with the nature of social enterprises and cooperative financial organizations.

The collection of essays was recently published by the Institute of Rural Development of the Chinese Academy of Social Sciences, the China Association for the Promotion of County and Town Economic Exchanges, the China Microfinance Alliance and the China Social Sciences Press. With Wu Xiaoling and Liu Kegu as consultants, Du Xiaoshan and Liu Wenpu as editors-in-chief, and Sun Tongquan and Bai Chengyu as deputy editors, the collection provides a comprehensive review, summary and prospect of the development process of China's microfinance and inclusive finance, with 37 articles.

The collection summarizes many concepts, such as in order to achieve the healthy development of microfinance and inclusive finance, first of all, we should guide the development of the microfinance industry with sustainable ideas, and grasp the characteristics of the development trend of microfinance: First, microfinance has dual value, that is, social goals and financial goals, in theory and practice, to prevent one-sided emphasis on subsidies or the pursuit of profit maximization tendencies, pay attention to the balance and unity of "Tao" and "art", profit-seeking and righteousness in inclusive finance, should not forget the original intention, keep in mind the mission Second, microfinance institutions are more specialized; third, microfinance has become an industry, not just a product, and has gradually formed a market with certain competitiveness; fourth, only commercialization can achieve sustainable development.

The collection of essays suggests that microfinance should be included in the track of standardized development, relevant regulations should be promulgated as soon as possible, unified supervision should be carried out in the form of business substance rather than organization, so as to provide a regulatory basis for public welfare microfinance organizations, microfinance companies, farmers' capital mutual aid organizations and other institutions that do not absorb public deposits and are substantively engaged in lending business, implement strict license management, unify regulatory standards, achieve full regulatory coverage, and prevent regulatory arbitrage.

The collection of essays mentions that a relatively independent inclusive financial regulatory service system should be established. Strengthen the construction of a two-tier financial supervision system between the central and local governments that combines unification and decentralization, accelerate local financial supervision legislation, and strengthen the establishment of local financial regulatory departments and staff training.

The collection suggests that a multi-level, cascade and differentiated policy guidance system should be established, and the current government's various support policies for small and micro finance should be sorted out, simplified and adjusted in accordance with the principles of "great fairness and small support" and "standardized, simple, efficient and scientific": first, it is prudent to adopt special preferential policies only for large and medium-sized enterprises; second, it is to shrink the financing support policies for "small and medium-sized enterprises" and "agriculture-related" with relatively broad objects; the third is to stabilize the financing support policies for small enterprises; fourth, it is to focus on supporting micro-enterprises, individual self-operation, and self-operation. Financial institutions and businesses in economies such as rural households provide financing services; fifth, financial institutions and businesses that are particularly supportive of financial institutions and businesses involved in poverty alleviation, poverty reduction, and support for weak finance.

The collection of essays highlights the need to apply modern technology to improve the level of microfinance services and continuously expand the coverage of financial services. Microfinance should better serve small and micro enterprises and rural revitalization. It is necessary to strengthen the construction of inclusive financial technology products and credit information systems.

The collection of recommendations points out that it is necessary to strengthen the socialization of inclusive financial infrastructure services. First of all, accelerate the implementation of the two-dimensional statistical system of inclusive finance, and combine the financial statistics method based on the division of the real economy with the financial statistical method based on the division of the financial industry's own business. Vigorously promote financial education, improve the financial quality of citizens, but also face the industry, update knowledge, adhere to conscience.

According to reports, since the introduction of the Bangladeshi rural bank microfinance model by the Institute of Rural Development of the Chinese Academy of Social Sciences in 1993, China's microfinance and inclusive finance have been developed for 25 years. (End)