2022 China Financial Inclusion Development Report Highlights Need for Greater Emphasis on Financial Health

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A new report on the growth of financial inclusion in China has called for greater focus on the financial health of households and individuals.

On 9 November the China Financial Inclusion Research Institute (中国普惠金融研究院) officially released the “Safeguarding Financial Health – China Financial Inclusion Development Report (2022)” (守护金融健康——中国普惠金融发展报告(2022) in Beijing.

The report said that financial health will become a key consideration for policymakers following efforts to drive the growth of financial inclusion in China.

“Financial health will be included in the policy framework, against the background of financial inclusion entering a period of high-quality development,” said the Report.

“[Regulators] will increase the importance placed by all sectors of society on protecting the rights and interests of financial consumers and financial health, and drive a shift in development of financial inclusion in China from stressing the accessibility of finance towards increasing the financial welfare of inclusion demographics.”

State-owned media highlights the increasing use since the start of 2022 of the term “financial health” (金融健康) with reference to financial inclusion.

The “China Financial Inclusion Indices Analysis Report (2021)” (中国普惠金融指标分析报告(2021年)) released by the Chinese central bank just prior to the October 1 National Day makes reference to the term “financial health” on five occasions, marking its firm inclusion in the lexicon of officialdom.

“Financial inclusion has upgraded from a focus ‘yes or no’ to ‘good or bad’ at present, and in future will shift to ‘strong or not’,” said the Report.

“This will require greater focus on the financial condition of households and individuals, and planning and expediting financial health.”