Credit-risk decision mechanism (CRDM) with incentive effect under asymmetry information
In this paper, we consider that there are two types of loan entrepreneurs in a society: one is high-risk type and the other is low-risk type. We study the credit-risk decision mechanism (CRDM) with an incentive effect under asymmetric information. We introduce the theory and method of incentive mechanism for the research. We establish a credit-risk decision model from the point of view of the risk minimization of credit money. We give both the incentive compatibility constraints and individual rationality constraints. In addition, we also derive a sufficient and necessary conclusion that the bank offers the same rationing to the two types.