Analyzing The Deficiency Of Financial Creditability In China

At present, the serious deficiency of financial creditability has caused an insufficient supply of financial creditability resources and an increasing cost of transactions. The paper try to find the reasons within the framework of game theory and ways to help solve the problem of creditability deficiency.Financial creditability combines modern finance and credit, it's born with risk, expanding and credit structural complex. Just because of the natural instinct of financial creditability, along with our external environment during this economy transition period, all made the phenomenon of deficiency of financial creditability more and more popular, and disturbs market order and finance's ability to promote the growth of economy.This subprime crisis started in USA shows that deficiency of financial creditability still exists even in matural finance credit market, and can bring up global finance crisis, bring the whole world economy into recession. We should pay attention to the problem in China's financial market during this transition from China's market economy into credit economy, and finance credit fast development period. We should build our financial credit supervision system against financial credit loss and punishment system to credit loss.Paper establishs a simple model using the game-theory, it explore the choice of A and B on the market of financial creditability. The conclusion shows that:1.Whether the credit giver can make the right credit giving strategy depend on if he could know credit receiver's default rate.2. Whether the credit receiver is honest depend on the value of punishment and reward. They tend to be more honest with valuable reward. The conclusion set the base for making effective finance credit supervision policy and finance credit loss punishment system.Under the conclusion of the analyzing of the game-theory model, the paper suggests establishing a whole institution which includes establishing credit rating and corresponding mechanism and mechanism of punishing the loss of credibility, transforming the government function, improving the credit law.The build and perfection of this system is the regulation safeguard to effectively guard against finance credit loss, promote credit economic healthy development.