A Study of Inclusive Financial System in China

Since 2006, the United Nation has strongly promoted the inclusive finance system to the world. The goal is to achieve that each of the developing countries should have an inclusive financial sustainability system, common to all levels of the population with providing appropriate financial products and services. Under this circumstance, The World Bank and G20 group further research the basic principles of inclusive finance to help poor and low-income people out of poverty, provide the construction framework, and measure the system quantities’ index. It comes out the short-term goal is to solve the gap between rich and poor, avoid the financial crisis, improve financial fairness, reduce financial exclusion and increase inclusive finance. Furthermore, the long-term goal is to increase the national income (GDP) and maxima the social welfare. However, inclusive finance is fundamentally conflicted. Both welfare and profit are incompatible in nature. The outcome of the conflict is financial inequity and financial exclusion. The low-income, small and medium-sized business owners and these disadvantaged groups are unable to get the completed financial services. Overall, finance inclusion or finance fairness in recent years has been hot topics for UN, IMF or G20. The leadership team has high pressure to provide the packaged solutions that integrates those missing population back into the financial system by 2020. Keywords: inclusive finance, finance exclusion, financial fairness, inequity