Credit Markets, Credit Management Of The Borrower - The Borrower's Active Breach And Incentive Constraints

At presant, uncreditable behavior has been widespreaded in our civil economic life, it manifests as the fake and fault pruducts emerging endlessly, bilking being in vogue. They?ye badly worsened our investment environment, hindered the healthy development of our economy. At the same time, the fact that our credit management falls behind the current demand causes the borrower breaking their faith in credit mar- ket. From the view of micro ?economics, the uncreditable behavier represents the bor- rower?s active and passive default. From the view of macro ?economics, it niairily represents the credit ?rationing and banking ?crisis. And the banks and companies of our country will also have to face the violent competitions from their foreign counterparts after our country entry the gate of WI扥. So, to study the borrowers?credit in credit market and how to manage it are of great theoretical value and immediate significance. Theoretically speaking, under the asymmetry of information, the borrower?s de- fault and cheating for loans are rational choices for their own maximized benefits. But we can still at least partly constrain their opportumismal behavior by managing the bor- rowers?credit, in order to decrease the losses of banks and social welfare. On this way, developed countries such as the United States of America and Japan have made some beneficial experiments, their experiences and lessons are worthy of being used for our reference. This paper first sets forth the consepts of credit , borrower?s credit and their fun- tions, points out the lubricant function about credit and the harmfulness to society caused by the problem of the borrower?s credit. Then penetrates into the inevitablity of the dishonest choice of the borrower from the view of game theory and information econimics, analyses several throretical models to avoid the dishonest choice made by borrowers. Next, from the view of ralationship between banks and enterprises , the pa- per construsts the America and Japan about their mamagement mode on borrower?s credit. Finally, according to the situation of our country , the paper puts forward some advices on how to strongthen the borrower?s credit management.