Research on the Development of Chinese Rural Banks from the Perspective of Inclusive Finance—Based on the Empirical Evidence of Fudeng Rural Bank

With the development of rural banks in China for more than a decade, some progress has been made in supporting micro-credit and serving agriculture, rural areas and farmers. However, with the promotion of the breadth and depth of practice, there are still many problems to be solved. In this paper, based on the summary of existing research results and in the context of inclusive finance, Fudeng rural bank is taken as a typical case to analyze, so as to provide new ideas for the sustainable development of rural banks in China. In conclusion, suggestions are proposed from the policy support, financial, regulatory mode of science and technology, enterprise culture and the developing direction of five aspects.


Introduction
With the deepening reform of the financial system and the continuous improvement of the financial service system, in order to build a rural inclusive financial system and strengthen the institutional supply of rural revitalization, village banks, as a new form of rural finance, have a good development prospect. Its establishment can not only break the current financial monopoly in rural areas, but also further alleviate the demand for small loans from farmers and accelerate the capital flow in rural areas. At the same time, we will support vulnerable industries in rural areas and narrow the gap between urban believed that rural banks have obvious institutional advantages, financial service advantages and corporate culture advantages, but lack the awareness of active risk management [2]. Sun and Li (2009) compared the operation conditions of the three rural banks and found that the capital outflow of rural banks was serious, and the proportion of loans related to agriculture was very small [3]. Wu et al. (2009) investigated the efficiency level of rural banks through DEA model, suggesting that rural banks in their initial stage should enhance capital strength and business income to enhance competitiveness [4].
Catalytic development phase (2010 to the end of 2015). Zhao and Wang (2010) conducted an empirical study on the initiator, site selection and registered capital of rural banks, and proposed that the development of rural banks is contrary to the original intention of policies and requires active guidance from the government and regulatory authorities [5]. Xie and Wan (2010) pointed out that the single holding mode of rural banks is not conducive to the participation of private capital in the reform of the financial system [6]. Ren (2011) believed that rural banks, as a new type of rural financial institution, should be complementary rather than competitors in the financial market. Meanwhile, reserve should not be taken as a performance indicator [7]. Meng et al. (2012) found that the popularization of rural bank network is conducive to reducing financial exclusion and building the development of diversified micro-finance [8]. Zhang et al. (2013) analyzed the moral risks of rural banks, and suggested strengthening prudential supervision and improving the market withdrawal mechanism of rural banks to reduce the possible moral risks [9]. Li (2014) pointed out that rural banks need to change the supervision concept, strengthen the grass-roots supervision force, and set up special funds for support [10]. Qiu and Sun (2014) suggested that rural banks need to optimize the equity structure and follow the road of privatization [11]. Ge et al. (2015) found through field research and empirical research that the rural banks' rural support and profitability were in conflict, and the local economic development level was inversely related to the profitability of rural banks [12]. Wang (2015) encouraged rural banks and local governments to strengthen the linkage and cooperative relationship, and attempted the cross-regional flow of capital [13]. Zhou (2016) found that the level of market competition can improve the social performance of rural Banks and reduce the financial performance of rural banks [14]. Li et al. (2016) suggested that rural banks should establish high-quality board structure and ensure their independence. At the same time, improve the information disclosure system and promote the efficient operation of institutions [15]. Dai (2016) found through research that regular staff training can improve the marketing ability and risk prevention and control ability of the network [16]. Li et al. (2017) analyzed the holding mode of initiative-banks of rural banks and found that most rural banks choose absolute holding mode, but the development speed is lower than that of relative holding mode [17]. Mao and Luo (2018) found that the establishment of rural banks drives agricultural production efficiency, and it is necessary to further deepen the equity reform of rural banks in the future to give more development space [18].
To sum up, although the above research results have strong references, most of these studies remain at the theoretical level and lack of integration with practice. Therefore, this paper takes Fudeng rural bank as a specific example, tries to analyze its development status and existing problems through field research, and provides some ideas for rural banks to further implement the inclusive finance strategy.

Inclusive Finance: An Important Stage of China's Rural Financial Reform
"Inclusive Financial" is relative to the proposed a concept of "Exclusion Financial", the goal is to at affordable cost for all social strata and groups to provide effective financial services, focusing on the service object is small micro enterprises, farmers and urban low-income groups, make live in poverty or the edge of the group, a series of financial tools and services. Germana and Luisa pointed out that inclusive finance can not only reduce social and economic inequality, but also bring higher economic growth and prosperity. Bateman (2010) argued that although individuals and small businesses have higher credit risks, the implementation of inclusive finance enables disadvantaged groups to still have access to capital sources, so as to carry out income-generating activities and escape from poverty [19]. At present, there is a large gap between urban and rural areas in China, and there is still an obvious financial gap in rural areas. Some rural households are still unable to enjoy convenient financial services. Therefore, the implementation of inclusive finance can not only broaden the scope and depth of rural financial services, but also enhance the sustainability of financial institutions. It can also reduce the rural poor population, improve the economic and social status of farmers , and build a more reasonable rural financial ecological environment [20].

Successful Experience of Developing Inclusive Finance of Fudeng Rural Bank
Fudeng rural bank has made a series of improvements and innovations in building inclusive financial ecosystem, improving rural financial service system and improving financial service quality.

Adopting the Corporate Governance Structure of "Joint Guidance"
There have been many drawbacks in the traditional corporate governance structure of rural banks. On the one hand, the operation of rural Banks is limited by the main sponsor banks, which leads to the lack of independence and flexibility.
Taking Taishang village bank as an example, rural commercial bank of Taicang, Jiangsu province has 26 million shares, accounting for 52%. On the other hand, the organizational framework inside the bank tends to be flat and lacks the operation mechanism of mutual checks and balances and mutual independence, leading to imperfect bank information disclosure.
In order to give village town banks more autonomy, Bank of China has set up a special preparatory group responsible for the daily management, monitoring

Implementing Customized Inclusive Financial Products
In order to meet the financial needs of different levels in the countyside, Fudeng rural bank tailors different financial products for different groups to further segment the product market. It has not only launched targeted loan products for enterprises, students, agriculture, rural areas and farmers, but also innovated the mortgage guarantee model, allowing farmers to take factories, poultry houses and vegetable greenhouses as "quasi-collateral". The idea of "no mortgage" is put forward for rural pension finance, which can benefit all the people (Table 1).

Using Professional Micro-Credit Technology
Considering the specific weakness of "high cost and low profit" of rural finance, Fudeng rural bank pays close attention to risk control, and the primary key factor affecting the risk is the quality of loans. Therefore, in order to promote the commercial sustainability of rural banks, they adopted the professional micro-

Unreasonable Competition Structure of Rural Financial Market
According to the survey, one of the external reasons for the insufficient competitiveness of rural banks is the imperfect structure of rural financial market. At   (Table 2).

High Staff Mobility and Low Professional Quality
According to the investigation, the author has learned that the management of

Strive for Support from National Fiscal and Tax Policies and Actively Coordinate with Relevant Departments
The operation cost of rural banks is relatively high, and the implementation of inclusive financial policies cannot be separated from the strong support of national policies and legal protection. In terms of taxation: The tax preferential period of the state for rural banks is 5 years, after which the tax rate will be res- information feedback channel, and actively communicate and improve when finding problems, rather than work passively.

Expand the Radiation Scope of Rural Banks and Seek Support from External Financial Technology
The establishment of village banks can inject fresh force existing in rural areas, promote benign competition of the banking institutions of various types, thereby broadening the farmers financing, arouse the enthusiasm of farmers production and operation, break the situation of private lending is not standard, so as to fundamentally solve the realistic problems in the financial supply, implement the inclusive financial policy. On the one hand, rural banks should establish more branches as soon as possible, increase business outlets and expand market share. In addition to providing financial products and services to customers, bank outlets are important channels to attract business resources and maintain relations with customers. With the continuous expansion of financial distribution products and the increasing complexity of services, bank branches can not only meet the financing needs of local residents, but also reduce operating costs. In particular, the main sponsor banks are encouraged to set up inter-district rural banks to achieve scale effect. On the other hand, rural Banks should strive to seek external cooperation based on their own incomplete basic conditions. Take the Fudeng rural bank as an example. At the end of 2017, Suning finance company provided fast payment service for the bank's debit card. At home, villagers could enjoy a number of living services such as doctor registration, water and electricity payment, entertainment and mobile phone recharge, which greatly facilitated the life of residents. In terms of risk prevention and control, Suning finance company has carried out blacklist swap and technical cooperation with Fudeng village bank to help rural banks get online and offline business, and promote the transformation and upgrading of rural banks to Internet finance. At the same time, rural banks should also actively seek cooperation with local enterprises, so as to build rural financial services in the mode of "industrial chain".

Optimize the Regulatory Path and Create a Tiered and Categorized Regulatory Model
The supervision of rural banks has special nature: it is the object of supervision.
Rural banks are small community banks aiming to promote the flow of funds

Explore New Forms of Investment-Managed Rural Banks and Take the Road of Intensive Development
According to the notice issued by the China Banking Regulatory Commission in January 2018, the pilot projects of investment-managed-type rural banks and multi-countries banks should be actively promoted to further implement the rural revitalization strategy and the construction of inclusive financial system. After receiving all the equity held by the initiator, the investment management-type rural banks shall be responsible for the various rural Banks they invest in. This mode is characterized by "intensification" and "specialization", which can make up for the shortcomings of middle and background services of rural banks at a lower cost, such as the construction of IT system, the cultivation of professional talents and the introduction of high-quality private capital.
In the process of promoting the intensification of rural banks, attention should be paid to: Firstly, we should distinguish between quality and quantity. Intensive that are contradictory to rural support and profitability. They cannot damage the interests of banks for service, nor can they get rid of rural support for profit.
Therefore, it is crucial to control risks and ensure profits in the rapid expansion of rural banks. Fourthly, we should strive to achieve financial concentration. Financial concentration of commercial banks can not only improve the accuracy of financial accounting, but also improve the level of industry supervision, eliminate illegal operations by people outside the system, improve the information relevance of the bank financial system, and ensure the stable operation of rural banks.

Conclusion
Rural banks in China can become a better carrier of inclusive finance, thus pro-