Agent or Borrower? An Incentive of Moral Hazard with China Commercial Guarantee Company
Joint Authors
Zhang, Wei
He, Feng
Zhang, Yongjie
Xiong, Xiong
Source
Mathematical Problems in Engineering
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-6, 6 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-03-23
Country of Publication
Egypt
No. of Pages
6
Main Subjects
Abstract EN
This paper studies the behavior of commercial guarantee company in the game theory framework.
Different payoff structures with guarantee company behavior for banks, borrowers, and the guarantors are formed in the presence of credit rationing.
We derived and explained the surviving rule of different types of guarantee companies, and we further conclude the condition in which guarantee companies are likely to be involved in a moral hazard problem.
We conclude that, in the presence of regulatory arbitrage opportunity, the guarantee company has incentive to switch its role from bank agent to the borrower, being a second-hand lender.
When the macroeconomic risk is high, the switching of this role will transfer the risk back to the banks.
American Psychological Association (APA)
He, Feng& Zhang, Wei& Zhang, Yongjie& Xiong, Xiong. 2014. Agent or Borrower? An Incentive of Moral Hazard with China Commercial Guarantee Company. Mathematical Problems in Engineering،Vol. 2014, no. 2014, pp.1-6.
https://search.emarefa.net/detail/BIM-509043
Modern Language Association (MLA)
He, Feng…[et al.]. Agent or Borrower? An Incentive of Moral Hazard with China Commercial Guarantee Company. Mathematical Problems in Engineering No. 2014 (2014), pp.1-6.
https://search.emarefa.net/detail/BIM-509043
American Medical Association (AMA)
He, Feng& Zhang, Wei& Zhang, Yongjie& Xiong, Xiong. Agent or Borrower? An Incentive of Moral Hazard with China Commercial Guarantee Company. Mathematical Problems in Engineering. 2014. Vol. 2014, no. 2014, pp.1-6.
https://search.emarefa.net/detail/BIM-509043
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-509043