The Relationship Between Microcredit Technology And Bank Organizational Structure

The problem of information dissymmetry and moral hazard exist in each credit market. The different customer also has the different characteristics and different demand, so need to adopt the different credit technology to handle customer's information to resolve the information dissymmetry and morals risk problem. The different credit technology needs the different loan business process, but the business process has close connection with the organization structure.So the different credit technology needs the different bank organizational structure to match.Based on this train of thought, we will first analyze the present financial situation of small business and the economic environment small banks faceing,and point out that the development of small banks will advantage the small business lending, then introduce some relevant research found.After that, this paper models the inner working of microcredit technology,and comparing the implications in different bank organizational structures. At last, we reach a conclusion that the microcredit technology will working better by structuring the bank as a small,closely-held organization with few managerial layers,the soft information may be easy to produced and communicated, the agency problems may be resolved best, the risk and cost may be kept within acceptable limits.