A Study On Credit Rationing And The Financing Gap Of SMEs

Abstract: The article, which inquires into the problem of the financial gap of SMEs from the aspect of credit rationing, makes a thorough study on the factors leading to the financial gap of the SMEs in China by analyzing the formation mechanism of credit rationing with asymmetric information, and further more puts forward the countermeasures of credit rationing in order to solve the problem of the financial gap of our SMEs. First, the thesis introduces the current situation and financial gap of the SMEs in our country. Second, by analyzing adverse selection, moral hazard, transaction costs and fund property with asymmetric information, the article theoretically probes into the formation mechanism of credit rationing and the financial gap of SMEs. Third, the author analyzes the particularity of the credit rationing mechanism and financial gap of the SMEs in our country. Last but not the least, the article puts forward the countermeasures of credit rationing from the aspect of SMEs, banks and government.