What is inclusive finance?

The concept of inclusive finance was proposed by the United Nations in 2005. It refers to the provision of appropriate and effective financial services at an affordable cost to all classes and groups of society in need of financial services. The 2016 Government Work Report proposed 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. to implement differentiated assessment and evaluation methods and support policies to effectively alleviate the financing difficulties and expensive financing problems of small, medium and micro enterprises. On May 3, 2017, Li Keqiang chaired an executive meeting of the State Council and clearly required large commercial banks to complete the establishment of inclusive finance divisions within 2017.

“Financial institutions cannot only focus on major enterprises and ignore small enterprises, let alone ‘send umbrellas when it is sunny and withdraw them when it rains’!” Li Keqiang pointed out at the executive meeting on May 3, 2017, “We must Through the development of inclusive finance, we will improve the coverage and availability of financial services and provide effective support for the real economy. "Large commercial banks must establish the correct concept and become the backbone of inclusive finance."

The five major state-owned commercial banks all stated that in the next step, they will accelerate the construction of inclusive finance divisions. ICBC has extended its inclusive finance division to all first-tier (directly affiliated) branches, and plans to establish 230 small and micro financial services specialized institutions in second-tier branches or key sub-branches by the end of the year. Bank of Communications takes credit business with an exposure of less than 20 million yuan (inclusive) as a breakthrough point, establishes a "specialized team + traditional outlets" mechanism, and gradually promotes business unit deployment and other models.

Relying on the resources of Bank of China Group, Bank of China initially established the Inclusive Finance Division based on Bank of China Fullerton Rural Bank.

Li Keqiang repeatedly stated that the development of inclusive finance requires not only the efforts of financial institutions and the support of relevant supporting policies, but also more complete regulatory policies: on the one hand, it is necessary to supervise based on loan flows whether they are truly oriented to the real economy, especially On the other hand, "agriculture, rural areas and farmers", small and medium-sized enterprises, etc. must also pay attention to corresponding risk points and provide timely reminders.

As of the end of June 2017, the five major state-owned commercial banks, Industry, Agriculture, China, Construction, and Communications, have all released specific plans for establishing inclusive finance divisions, and the inclusive finance divisions of the head office have been officially launched.

In addition to establishing relevant departments, the five major state-owned commercial banks have also begun to explore and improve their management systems. China Construction Bank has newly established inclusive finance indicators in the KPI assessment system for first-level branches in 2017, initially including financing services for major groups such as small and micro enterprises, agriculture-related businesses, and individual entrepreneurship involved in inclusive finance into the assessment scope.

The Agricultural Bank of China has copied the mature business unit system that serves "agriculture, rural areas and farmers" into the field of inclusive finance, forming a service system of "agriculture, rural areas and farmers, inclusive finance business unit".

Extended information:

The targeted reserve requirement ratio reduction for 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 Weibo "PBOC Weibo" that on September 30, 2017, the People's Bank of China issued the "Notice of the People's Bank of China on the Implementation of Targeted Reserve Bank Reductions for Inclusive Finance" (Yinfa [2017 ]222). At present, relevant financial statistics work is being carried out at an intensified pace, and it is expected that the targeted RRR reduction for inclusive finance will be fully implemented on January 25, 2018.

On September 30, 2017, the central bank announced that it will implement a targeted reserve requirement ratio reduction policy for inclusive finance starting from 2018: In order to support financial institutions in developing inclusive financial services, it will focus on small businesses with a single credit limit of less than 5 million yuan. Micro enterprise loans, operating loans for individual industrial and commercial households and small and micro business owners, as well as loans for farmers' production and operation, business start-up guarantees, registered poor people, and student aid.

Unified implementation of targeted RRR reduction policies for commercial banks whose above-mentioned loan increments or balances account for a certain proportion of all loan increments or balances.

The assessment mechanism for targeted reserve requirement ratio reductions was introduced by the central bank in 2014 and has been implemented for more than three years. By implementing preferential reserve ratios for commercial banks that meet prudent operating requirements and meet standards for "agriculture, rural areas and farmers" or small and micro enterprise loans, and dynamically adjust their reserve ratios on an annual basis based on the "agriculture, rural areas and farmers" or small and micro enterprise loans of commercial banks. In this way, we will establish a positive incentive mechanism to guide commercial banks to improve and optimize their credit structure and enhance support for "agriculture, rural areas and farmers" and small and micro enterprises.

Compared with the original targeted reserve requirement ratio reduction policy, the inclusive financial targeted reserve requirement ratio reduction policy that will be implemented on January 25 is an expansion and optimization of the original targeted reserve requirement ratio reduction policy in accordance with the deployment of the State Council. Better guide financial institutions to develop inclusive financial services.

It is worth noting that after the central bank issued the "Notice of the People's Bank of China on Implementing Targeted Reserve Bank Reserve Reductions for Inclusive Finance" on September 30, 2017, the market had predicted that this targeted reserve requirement ratio reduction might be released. 800 billion liquidity, but later the market generally believed that the actual scale may be 300-380 billion, which is far lower than previous predictions. The 300 billion capital scale is even lower than the recent medium-term lending facility (MLF) investment scale.

As for the impact of this targeted RRR cut on inclusive finance on monetary policy and liquidity, which the market is most concerned about, some market researchers believed that when the policy was introduced, it was “close to a comprehensive RRR cut” and “equivalent to a general RRR cut of 0.5%”. percentage points." Subsequently, the Financial Times, which is directly controlled by the central bank, wrote an article saying that this targeted RRR cut was just a fine-tuning of the policy, not a disguised comprehensive RRR cut.

The relevant person in charge of the central bank also stated earlier that the implementation of targeted reserve requirement ratio reduction policy for inclusive finance will not change the overall orientation of prudent monetary policy. At the same time, the liquidity released by the targeted reserve requirement ratio reduction policy is also in line with the overall regulation requirements, and the liquidity of the banking system remains basically stable.

According to the regulations of the central bank, the targeted reserve requirement ratio reduction policy implemented by inclusive finance this time retains the original two-level assessment standards: any commercial bank with the above-mentioned loan balance or incremental ratio reaching 1.5 in the previous year, deposits The reserve ratio can be lowered by 0.5 percentage points based on the benchmark level announced by the People's Bank of China; for commercial banks with the above-mentioned loan balance or increase accounting for 10% in the previous year, the deposit reserve ratio can be further adjusted based on the first level based on the progressive principle. Decreased by 1 percentage point.

Among them, the first-tier assessment standards are basically adapted to the actual granting of loans in the inclusive finance field by most commercial banks, helping to encourage them to continue to tilt their credit resources towards the inclusive finance field.

As for the second level of assessment standards, the central bank bluntly stated, “This level of standards is relatively high and can only be achieved by commercial banks that are prominent in lending in the field of inclusive finance, but this is conducive to establishing positive incentives. Mechanism is also part of the targeted RRR reduction policy. "

According to the central bank's regulations, state-owned commercial banks, Postal Savings Bank of China, joint-stock commercial banks, city commercial banks, non-county rural commercial banks and Foreign-funded banks are all eligible to participate in the assessment of the implementation of targeted reserve requirement ratio reduction policies for loans in the inclusive finance field. At the same time, to enjoy targeted reserve requirement ratio cuts, banks must meet macro-prudential operating standards: their macro-prudential assessment (MPA) ratings for more than three quarters (inclusive) of the previous year were all above B level (inclusive).

Baidu Encyclopedia-Inclusive Finance