Title: Analysis of Explicit and Implicit Incentive Mechanism for Controlling the Credit Risk
Abstract:There is the asymmetric information between the creditor and debtor in the process of borrowing or lending m oney,which leads to the moral hazard.Moral hazard is the cause of credit risk.In the practi...There is the asymmetric information between the creditor and debtor in the process of borrowing or lending m oney,which leads to the moral hazard.Moral hazard is the cause of credit risk.In the practice of bank,the existence of explicit and implicit incentive mechanism reduces the credit risk. This paper establishes the incentive model of guarding moral hazard and the reputation model of firm ,then analysis the roles of explicit and implicit incentive mechanism for controlling the credit risk.Read More
Publication Year: 2001
Publication Date: 2001-01-01
Language: en
Type: article
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