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China to boost inclusive finance

Updated: Jan 15,2016 3:24 PM

The State Council issued a circular on Jan 15, making a five-year plan to develop the country’s inclusive finance.

The goal of the plan is to set an inclusive finance system that is in coordination with the construction of a moderately prosperous society by 2020 and satisfies people’s need for financial services, the State Council said.

Inclusive finance is financial services offered by financial institutions to micro-businesses, farmers, low-income population in urban areas, poor population, the disabled, and senior citizens.

Under the new policy, full coverage of bank and insurance services will be accomplished in rural areas, and financial support will be improved for low-income population in urban areas, the poor, farmer entrepreneurs, college student entrepreneurs, and the disabled.

According to the circular, the coverage rate for farmer households that take part in agricultural insurance will be raised to above 95 percent.

Banks will play an important role in lowering debt costs for micro-businesses and improving financial services in mid-west regions, grain-producing areas, and regions that are hubs for micro businesses.

To improve financing services for micro-businesses, efforts will be made to expand financing channels of petty loan companies and pawnshops. Financial leasing companies and equipment leasing companies are encouraged to better support improvements for equipment and technology at micro-businesses and agricultural companies, according to the circular.

Tests for aid within rural cooperatives will be carried out to explore new ways for financial development.

A new group of financing assurance institutions mainly funded by the government will be built, and provincial re-guarantee institutions will be promoted to support micro-businesses and agricultural issues.

To improve quality and lower risks in inclusive finance, industry access standards and regulations will be set.

Emerging technologies such as big data and cloud computing will be used to build Internet financial service platforms for customers.

Internet payment institutions are encouraged to support the development of e-commerce by providing convenient payment services for people.

The plan also includes basic financial infrastructure construction as it encourages banks and payment institutions to provide secure and reliable online payment and mobile payment services in rural areas.

In addition, an information system of inclusive finance will be built by constructing multi-level credit record platforms for micro-businesses and farmers, the plan said.