Research On The Risk-sharing And Compensation Mechanism Of Small-amount Credit Loans After Wenchuan Earthquake

The small-amount credit loans as an innovative financial model play a pivotal role in meeting the credit demand, adjusting the credit market and industrial structure and improving the level of farmers and low-income credit. In the context of "5.12 Wenchuan earthquake",getting ahead well with the small-amount credit loans is rather important for building the system of reconstruction credit funds and achieving the recovery objectives in disaster area. The small-amount credit loans have kept a continuing innovation and improvement in the mode of service since 1986.However,in the way of risk management, it failed to form a responsible, multifaceted participating and complex constructed risk-sharing and compensation mechanism. After the earthquake, the life and production in earthquake-stricken area have been seriously affected, the economy has suffered tremendous losses. The small-amount credit loans face greater risks and more difficulties in operation under the circumstances. If the small-amount credit loans do not have an effective risk-sharing and compensation mechanism, the financial and politic benefit will be greatly reduced. As the function of small-credit loans has strong externalities, the government as one of the main beneficiaries should be actively introducing an effective risk-sharing and compensation mechanism for the loans. And the key of establishing this mechanism is to introduce a multi-subject to participate and to combine the market and policy.This paper is analyzing the specificity and implement of the small-amount credit loans for the post-disaster reconstruction, discussing the significance of establishing a risk-sharing and compensation mechanism of small-amount credit loans for the post-disaster reconstruction, using the model of information economics, and proposing an effective way to establish a risk-sharing and compensation mechanism.The article first summarizes the related theories of small-amount credit loans, risk-sharing mechanism and risk compensation mechanism, and analyses the establishment of ways and practical significance of the current risk-sharing and compensation. Then it focuses on the theoretical basis of the risk and risk-sharing and compensation mechanism, analyzing the politic significance of carrying out small-amount credit loans innovatively, describing the theoretical basis and objective foundation of the risk-sharing and compensation system. Thirdly, it carries out a well targeted analysis on the small-amount credit loans for post-disaster reconstruction, based on the credit risk, moral risk, liquidity risk and natural risk, and illustrates the high risk of small-amount credit loans and the contradiction between a huge demand for loans and an unwilling to lend of commercial organizations.Next it classifies the needs and main body of small-amount credit loans and analyses the current implement of the loans. Based on such analysis, the paper states these policies carried out by the government which aims at preventing risk and inspiring the main body of the loans, and also puts forward problems about complicated operations and inspiration distortion. Based on the practice analysis, the paper uses the information economics such as basic models and game analysis to illustrate the necessity of combining the market and government for more effective small-amount credit loans, negate the model of taking high interest on loans to compensate for the risk, and highlight the crucial role of government in the risk-sharing and compensation system.. Finally, the paper proposes the formation of a multi-level risk-sharing and compensation mechanism participated and lead by government, while matching with market functions.