Core Viewpoint - The essence of inclusive finance is to adhere to commercial sustainability, which is crucial for mobilizing financial institutions and social capital to serve inclusive finance, particularly in supporting agriculture and small enterprises [2][6]. Group 1: Definition and Importance of Inclusive Finance - Inclusive finance refers to providing appropriate and effective financial services at affordable costs to all social strata and groups, focusing on daily financial services for the general public and supporting agriculture, small enterprises, and individual businesses in China [4]. - The practice of inclusive finance in China dates back to the 1930s, with significant developments in rural credit cooperatives and small loan experiments in the 1990s, culminating in the establishment of inclusive finance as a national strategy in 2013 [5]. Group 2: Commercial Sustainability - Commercial sustainability is essential for the continuous provision of quality financial services to inclusive clients, enabling financial institutions to innovate and develop better financial products [6]. - Financial institutions must adopt a "cost-covering, low-margin, high-volume" model to serve clients with limited financial capacity, ensuring that the business remains commercially sustainable [6]. Group 3: Government Support and Policy Mechanisms - Government support is vital for the development of inclusive finance, with policies such as fiscal subsidies and structural monetary policies designed to incentivize financial institutions to expand services to vulnerable groups [8]. - The People's Bank of China introduced tools during the COVID-19 pandemic to support small enterprises, providing incentives for banks to extend loan repayment periods and offering preferential interest rates for new loans [9]. Group 4: Market Mechanisms and Risk Management - The structural monetary policy aims to create effective incentive mechanisms that guide financial institutions to allocate resources to specific areas while maintaining market mechanisms to prevent moral hazards [10].

Core Viewpoint - The development of inclusive finance in China should adhere to the principle of commercial sustainability, focusing on providing affordable financial services to various social groups while ensuring the market's role in resource allocation [4][6]. Group 1: Chinese Practice of Inclusive Finance - Inclusive finance aims to provide appropriate and effective financial services to all social strata at affordable costs, with a focus on daily financial services for the public and support for agriculture, small enterprises, and individual businesses [4]. - Historical practices of inclusive finance in China date back to the 1930s, with significant developments in rural credit systems and small loan initiatives in the 1990s, culminating in the recognition of inclusive finance as a national strategy in 2013 [5]. Group 2: Commercial Sustainability as a Basic Principle - The essence of inclusive finance is to effectively utilize market mechanisms for resource allocation, emphasizing the role of financial institutions as market players [6]. - Financial institutions are encouraged to adopt a "cost-covering, low-profit, high-volume" model to ensure the sustainability of inclusive finance while meeting the basic financial needs of low-income clients [6]. Group 3: Government Support Policies - Government support is crucial for the development of inclusive finance, with policies aimed at directing financial resources to those in need through mechanisms like fiscal subsidies and policy financing guarantees [7]. - The effectiveness of government support hinges on balancing the intensity of assistance while preventing moral hazards, ensuring that market mechanisms continue to play a fundamental role in resource allocation [7][9]. Group 4: Case Study of Policy Implementation - During the COVID-19 pandemic, the People's Bank of China introduced tools to support small and micro enterprises, providing incentives for banks to extend loan repayments and offering preferential interest rates for new loans [8]. - These measures resulted in significant financial mobilization, with incentives leading to the extension of loans worth 2.2 trillion yuan and the issuance of new credit loans exceeding 10 trillion yuan [8].

Core Viewpoint - The development of inclusive finance should adhere to the principle of commercial sustainability, as emphasized by Yi Gang, the former governor of the People's Bank of China [1] Group 1: Definition and Importance of Inclusive Finance - Inclusive finance refers to providing appropriate and effective financial services to all social strata and groups at an affordable cost, based on the principles of equal opportunity and commercial sustainability [3] - Key areas of focus for inclusive finance in China include daily financial services for the general public, support for agriculture, rural areas, and small and micro enterprises [3] Group 2: Commercial Sustainability in Inclusive Finance - Financial institutions must adopt a "cost-covering, low-profit, high-volume" model to effectively manage credit distribution while ensuring commercial sustainability [4] - Government support policies should establish incentive-compatible mechanisms to encourage market participation and effectively allocate resources to the most needy areas [4] Group 3: Policy Support and Implementation - During the COVID-19 pandemic, the People's Bank of China introduced tools to support small and micro enterprises, providing incentives for local banks to extend loan repayments and offering preferential interest rates for credit loans [5][6] - From June 2020 to the end of 2021, the inclusive small and micro enterprise loan support tools provided 21.7 billion yuan in incentives, leading to a total of 22 trillion yuan in extended loans and over 10 trillion yuan in new credit loans [6]