The Study About Middleman In Credit Market

Some researches have showed that asymmetric information is the main cause of Credit Rationing. And development economics tells us that regulation on interest rates is another cause, and makes situation much more worse, which is more serious in transition economy. To avoid Credit Rationing, there are many institutions, including Middleman.In this dissertation, we study this kind of middleman. Three models are offered. In the first one we analyze the relationship between middleman and interest rates regulation. In the second one, the main factor is how the asymmetric information about the value of random collateral. And the final cause of middleman we study is about the cost of auditing. All that are described in these models can be observed in the case of "silk bank". And the conclusion we get is that if there is asymmetric information and interest rate regulation, some middlemen with special ability to tell the different type of applicants, or avoid the regulation, will join in the transaction, which will increase the supply of the credit market...