What is inclusive finance Introduction to inclusive finance

The concept of inclusive finance was put forward by the United Nations in 2005, which refers to the provision of appropriate and effective financial services at an affordable cost to all sectors and groups of society that have a need for financial services.The government work report of 2016 put forward the need to "vigorously develop" inclusive finance. The service targets are small and micro enterprises, farmers, urban low-income people, poor people and special groups such as the disabled and the elderly.

The five major banks set up inclusive finance divisions

The 2017 Government Work Report mentioned that large and medium-sized commercial banks are encouraged to set up inclusive finance divisions, and large state-owned banks should take the lead in doing so, implement differentiated assessment and evaluation methods and support policies, and effectively alleviate the financing difficulties of small and medium-sized micro-enterprises and the problem of expensive financing."

On May 3, 2017, Li Keqiang presided over a State Council executive meeting, clearly required large commercial banks to complete the establishment of the Department of Inclusive Finance within 2017.

"Financial institutions can not just look at major enterprises, ignoring small businesses, not to mention 'send umbrellas on sunny days, withdraw umbrellas in the rain'!" Li Keqiang pointed out at the executive meeting on May 3, 2017, "We should improve the coverage and accessibility of financial services through the development of inclusive finance, and provide effective support for the real economy." The Premier said, "Large commercial banks must establish the right concept and become the backbone of inclusive finance. You are duty-bound to do so!"

The five major state-owned commercial banks all said that, as a next step, they will accelerate the pace of promoting the construction of the inclusive finance division. Industrial and Commercial Bank of China will extend the inclusive finance division to all first-tier (directly under) branches, and plans to build 230 small and microfinance business franchises in second-tier branches or key sub-branches by the end of the year. The Bank of Communications has taken the credit business with an exposure of 20 million yuan or less as a breakthrough, established a "specialized team + traditional outlets" mechanism, and gradually promoted the business unit system and other modes of stationing.

Bank of China, relying on the resources of the Bank of China Group, has set up an inclusive finance division based on the Bank of China Fullerton Village Bank.

Li repeatedly said that the development of inclusive finance not only requires the efforts of financial institutions and the support of relevant complementary policies, but also requires a more comprehensive regulatory policy: on the one hand, it is necessary to regulate them according to the flow of loans to see whether they are truly oriented to the real economy, especially the "three rural areas", small and medium-sized micro-enterprises, etc., and on the other hand, it is also necessary to pay attention to corresponding On the other hand, it is also necessary to pay attention to the corresponding risk points and prompt prompt.

As of the end of June 2017, the five major state-owned commercial banks to set up inclusive financial business unit specific program has been introduced, the head office of the inclusive financial business unit have been officially listed.

The five major state-owned commercial banks, in addition to listing the establishment of the relevant departments, have also begun to explore the improvement of the management system. The Construction Bank has newly set up financial inclusion indicators in the KPI assessment system of its first-tier branches in 2017, initially incorporating the financing services of the major groups involved in financial inclusion, such as small and micro enterprises, agriculture, and individual entrepreneurship, into the scope of the assessment.

Agricultural Bank of China has replicated its mature business unit system of serving the "three rural areas" to the field of inclusive finance, forming a service system of "three rural areas finance business unit + inclusive finance business unit".

Expanded information:

The directional downgrade of inclusive finance was fully implemented on January 25, 2018

At 12:30 on January 17, 2018, the People's Bank of China (PBOC) announced on its official microblog "Central Bank Microcasting". "The central bank microcast" released a message that on September 30, 2017, the People's Bank of China issued the "People's Bank of China on the implementation of directional downgrade of inclusive finance notice" (Yinfa [2017] No. 222). Currently, the relevant financial statistics are underway, and it is expected that the targeted downgrade for inclusive finance can be fully implemented on January 25, 2018.

On September 30, 2017, the Central Bank announced the implementation of a targeted reduction policy for inclusive finance from 2018: in order to support financial institutions to develop inclusive financial services, focusing on loans to small and micro-enterprises with a single-family credit of less than 5 million yuan, business loans to individual industrial and commercial households and owners of small and micro-enterprises, as well as loans for production and operation of farming households, business start-up guarantees, the building of a file card for the poor, and student aid.

Uniformly implementing the targeted reduction policy for commercial banks whose incremental volume or balance of the above loans accounted for a certain percentage of the total incremental volume or balance of all loans.

The targeted quota reduction assessment mechanism, introduced by the central bank in 2014, has been in place for more than three years. Through the implementation of preferential reserve ratios for commercial banks that meet prudent operational requirements and "three rural" or small and micro-enterprise loans meet the standards, and dynamically adjust their reserve ratios on an annual basis according to the commercial banks' "three rural" or small and micro-enterprise loan investment situation, the establishment of a positive Incentive mechanism to guide commercial banks to improve and optimize the credit structure, and enhance support for the "three rural" and small and micro enterprises.

Compared with the original directional reduction policy, the directional reduction policy of inclusive finance that will land on January 25 is the expansion and optimization of the original directional reduction policy according to the deployment of the State Council, in order to better guide financial institutions to develop inclusive finance business.

What is worth paying attention to is that after the central bank released the "People's Bank of China on the implementation of directional downgrade of inclusive finance notice" on September 30, 2017, the market had predicted that this directional downgrade or will release 800 billion yuan of liquidity, but then the market is generally agreed that the actual scale may be in the range of 300-380 billion yuan, much lower than the previous prediction. And 300 billion of the scale of funds, even lower than the recent medium-term lending facility (MLF) release scale.

For the market is most concerned about the impact of this universal financial targeted downgrade on monetary policy and liquidity, some market researchers at the time of the introduction of the policy that "close to a full-scale downgrade" "equivalent to universal 0.5 percentage points", then the central bank The Financial Times, which is directly under the supervision of the central bank, wrote an article saying that the targeted downgrade is only a fine-tuning of the policy, not a full-scale downgrade in disguise.

The relevant person in charge of the central bank also said earlier that the implementation of directional downward policy on financial inclusion does not change the overall orientation of sound monetary policy. At the same time, the liquidity released by the targeted reduction policy is also in line with the total control requirements, the banking system liquidity to maintain basic stability.

According to the central bank regulations, this universal financial implementation of the targeted quota reduction policy retains the original two-stage assessment standards: where the balance or incremental share of the above loans in the previous year amounted to 1.5% of the commercial banks, the reserve requirement ratio can be adjusted downward by 0.5 percentage points on the basis of the benchmark tranche announced by the People's Bank of China; where the balance or incremental share of the above loans in the previous year amounted to 10% of the commercial banks, the deposit reserve requirement ratio may be adjusted downward by 1 percentage point on the basis of the first tranche in accordance with the principle of progressivity.

The first assessment standard is basically adapted to the majority of commercial banks' actual input of loans in the field of inclusive finance, which will help encourage them to continue to tilt their credit resources to the field of inclusive finance.

For the second gear assessment standards, the central bank bluntly said, "This gear standard is relatively high, only in the financial sector loan investment is more prominent commercial banks can achieve, but this is conducive to the establishment of positive incentives, but also belongs to the policy of targeted downgrade in the right sense."

In accordance with central bank regulations, state-owned commercial banks, China Postal Savings Bank, joint-stock commercial banks, urban commercial banks, non-county rural commercial banks and foreign banks, are eligible to participate in the assessment of the implementation of the policy of directional rate reduction in the field of inclusive financial loans. At the same time, to enjoy the targeted reduction, the bank also has to meet the macro-prudential operating standards: three quarters of the previous year (including) above the macro-prudential assessment (MPA) ratings are in the B level (including) or above.

Baidu Encyclopedia - Financial Inclusion