The Research on the SME's Collateral Credit Rationing under Loan Risk Compensation Mechanism

DOI

10.2991/wrarm-17.2017.24How to use a DOI?

Keywords

Loan Risk Compensation; The Collateral Credit Rationing Model; SME; Government

Abstract

This paper discusses the function of loan risk compensation in the collateral credit rationing model.According to the derivation of my model, we find when the bank have some requirements on interest and collateral, at the same time, we add the loan risk subsidy variable into the above model, loan risk subsidy can lower the bank's collateral requirements for the enterprise,therefore, we can conclude that loan risk compensation can effectively alleviate the credit rationing faced by enterprises.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Changbing Yang
AU  - Mu Zhang
PY  - 2017/11
DA  - 2017/11
TI  - The Research on the SME's Collateral Credit Rationing under Loan Risk Compensation Mechanism
BT  - Proceedings of the Fifth Symposium of Risk Analysis and Risk Management in Western China (WRARM 2017)
PB  - Atlantis Press
SP  - 134
EP  - 139
SN  - 1951-6851
UR  - https://doi.org/10.2991/wrarm-17.2017.24
DO  - 10.2991/wrarm-17.2017.24
ID  - Yang2017/11
ER  -