**6. Discussion and Conclusions**

In this paper, we document the behaviors of financial inclusion factors under the impact of their circumstance-monetary policy and economic fundamental. Many countries are advocating for developing financial inclusion, but every country has his own circumstance. Our work has rich policy implications. The policy makers and regulators will be able to adjust the strategy of financial inclusion without delay when noticing the sensitivity of financial inclusion to the circumstances. Therefore, investigating the developing circumstance of financial inclusion is of real value to itself, especially to its sustainability.

Many researchers focused on the measuring the status of financial inclusion, namely measuring financial inclusion index (Sarma, 2008; Adalessossi and Kaya, 2015; Allen et al., 2012, etc.) [5,6,14]. However, accurate measurement of the status financial inclusion is only the first step of studying financial inclusion, and the next step is how to achieve the effective development of financial inclusion and make it sustainable. At the same time, some other researchers study the responses of economic variables or society factors to financial inclusion. However, exploring the behaviors of financial inclusion is of equal importance under the shock of circumstance (Ageme et al., 2018; Lawal et al., 2018; Fontin et al., 2019; Ghosh, 2019; Lashiitew et al., 2019) [44–48]. It can provide references for policy making by understanding and further optimizing the circumstance of financial inclusion. Also, the structural similarity among innovation-driven economies- intellectual property legislation, infrastructure and well-functioned government is worth taking into consideration (Erkut B., 2016a) [30]. The structural similarity is in tune with our consideration when it comes to the circumstances of improving the productivity and effectiveness of financial inclusion.

Based on the regional data of China, we established eight VAR models. The first four are for monetary policy, and the last four are for economic fundamental. The empirical results show that the monetary policy exists a positive impact on the factors of financial inclusion and the economy has a contrary one. From the empirical results, it is found that financial inclusion reacts differently in response to the shock of circumstances and we further gain two following discoveries.

Firstly, the sustainable development of financial inclusion needs good circumstances (effective monetary policy). The People's Bank of China has implemented multiple incentive policies which can encourage financial service providers to expand credit to underserved segments. Financial service providers that demonstrate higher outreach to these groups receive better access to these facilities. Therefore, financial institutions have more incentives to provide loans for groups such as farmers,

the poor, and small and micro enterprises. Our empirical results that monetary policy has a positive impact on financial inclusion keep with the monetary policy intentions. A good policy environment is essential to the sustainable development of financial inclusion. Policy makers should introduce incentive monetary policies for inclusive finance and adjust them in a timely manner to maintain the sustainable usefulness of these monetary policies.

Secondly, the economy and finance coordinating is of great importance, which means the mutual promotion of economy and finance. The pursuit of excessive GDP growth is likely to incur structural economic problems, i.e., the imbalance of regional economic development, which will adversely affect the sustainable development of financial inclusion [4]. This imbalance will lead to the polarization of the rich and the poor, and from a financial perspective, it is reflected in the uneven distribution of financial resources. In view of this, the Chinese government is taking a series of measures to eliminate this imbalance, a process known as 'structural reform'. This process requires coordination between finances and the economy. Inclusive finance should serve the balanced development of the economy, especially in rural areas. Furthermore, sustainable inclusive finance will enable vulnerable groups to participate in the process of industrialization, and provide financial support for the transformation and upgrading of underdeveloped regions and local industries.

In the significant transition period of financial inclusion, our research confirms and analyzes the characteristics of this period, and also provides some ideas for the sustainable development of financial inclusion from the environmental aspect. To sum up, the circumstances-incentive monetary policy and economy coordinating with finance are the important prerequisites for the sustainable development of financial inclusion, because the circumstances can promote the quality and capital efficiency of financial inclusion and realize long-term coordinated development of financial inclusion. Then, it can be turned into a virtuous circle, for sustainable financial inclusion will lay a solid foundation for future development. Also, there are a few limitations to our paper. For the data availability we only selected two financial inclusion factors and chose China as the object of study because of data restrictions. So we hope to gather more related data on this topic for further research.

**Author Contributions:** The authors collaborated on all parts of the research including framing of the study collection and analysis of the documents, and writing of the results.

**Funding:** This research received no external funding.

**Conflicts of Interest:** The authors declare no conflict of interest.
