The Research On The Risk Control Mode Of Group Lending

Most of existing domestic studies on the countermeasures of small enterprises financing problems are based on the innovation of financial system and rebuilding of mechanism to analyze. However, the sound and abundant financing supply entities of small enterprises cannot mitigate the problem of information asymmetry facing the small enterprises financing effectively. Moreover, the financing information of small enterprises plays a crucial role in the financing availability. By analyzing the risk control mechanism of group lending scheme, this thesis aimed to solve the rigidity problem of financing information transfer of small enterprises, to provide the bank with an effective risk control mode in terms of small enterprises loans. In this thesis, the conclusions and contributions are mainly represented in the following three aspects:Firstly, on the basis of Game Theory, this thesis analyzed the risk control mechanism of group lending from the perspective of asymmetric information. It concluded that joint liability is one of the most remarkable features of group lending, though sequential financing, peer monitoring and peer pressure are in the same position. It is just the combination of these features that group lending mechanism becomes a powerful risk-control tool.Secondly, this thesis creatively established the risk control mode of group lending with joint liability and sequential financing. That is the mode of financing demand of small enterprises, financing information of group, financing supply entities, group intra-bank and small business accessing to capital. It also considered that the integration of group lending with joint liability and sequential financing and lender monitoring could effectively mitigate the moral hazard problem caused by information asymmetry. In addition, in the context of interest rate ceiling, the default rate of group lending is higher than that of the market-oriented. The interest rate ceiling is not conducive to the sustained development of group lending.Finally, by investigating into the international credit scoring model of microcredit, this thesis summed up key points in group lending risk control. It put forward some suggestions for the implementation of group lending, which include relaxing interest rate for the transition into market-oriented, preventing, managing and rescheduling the default loan, setting up risk fund to ensuring normal operations.