Proceedings of the 9th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2020)

The Incentive Mechanism of Government to Bank in Loan Risk Compensation Mechanism for Technological SMEs

Authors
Mu Zhang, Zhi-yuan Lü
Corresponding Author
Mu Zhang
Available Online 12 April 2021.
DOI
https://doi.org/10.2991/aebmr.k.210409.023How to use a DOI?
Keywords
technological SMEs, loan risk compensation mechanism, government, bank, multi-task principal-agent model, optimal incentive contract
Abstract
Establishing and perfecting the incentive mechanism of government to bank in loan risk compensation mechanism for technological SMEs is of great significance to improving the use efficiency of loan risk compensation funds for technological SMEs. Based on loans origination operation and bad debts write-off management operation, a multi-task principal-agent model for bank in loan risk compensation mechanism for technological SMEs was constructed, so that the optimal incentive conditions of bank were solved in two aspects: the incentive cost functions are inter-independent or inter-dependent. The results show, both the rational government and bank are induced by reality to complete the loans origination operation using more energy and time, but the bad debts write-off management operation is ignored to some extent. Therefore, the government should establish the quality evaluation system of bad debts write-off management for bank, as a result, the effort degree of bank in process of completing the bad debts write-off management operation can be directly observed. On the basis, paying equal attention to the performance of loans origination operation and bad debts write-off management operation, the incentive mechanism of government to bank will be constructed.
Open Access
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Cite this article

TY  - CONF
AU  - Mu Zhang
AU  - Zhi-yuan Lü
PY  - 2021
DA  - 2021/04/12
TI  - The Incentive Mechanism of Government to Bank in Loan Risk Compensation Mechanism for Technological SMEs
BT  - Proceedings of the 9th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2020)
PB  - Atlantis Press
SP  - 145
EP  - 150
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210409.023
DO  - https://doi.org/10.2991/aebmr.k.210409.023
ID  - Zhang2021
ER  -