Efficiency Evaluation and Its Influence Factors of Village Banks from the Perspective of Inclusive Finance
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Inclusive financial system is aimed to provide financial services to all people, especially to those in poor and low-income people, to meet their effective financial services needs, so as to provide equal credit opportunities to people and eliminate discrimination and injustice in financial service. The village banks provide an effective way for the development of inclusive finance and its financial sustainability and service coverage in rural area contributes to realizing the inclusive finance. This paper evaluates the operating efficiency of 22 village banks with a DEA model, and then analyzes its influence factors. The results show that the sample village banks operate well, while the credit efficiency needs to be improved and the developing scale should be adjusted. There is a significant influence on the efficiency of village banks when considering the development situation of the local economy, loan to deposit ratio of assets. Based on the empirical analysis, some suggestions are put forward.
Inclusive finance; Village banks; Operating efficiency; DEA model