Our Country Commercial Bank Credit Game Analysis

With China’s rapid economic growth, China ’s growth in various fields has also madegreat progress. Financial industry development is swift and violent with each passing day,wherein, commercial banks play a decisive role. But due to historical or other reasons,China’s commercial banks have a large number of non-performing assets, has seriouslyhindered the development of the commercial bank. Visible, reasonable be on guard creditrisk has been placed in commercial banks in China face problems. In the fierce competitionin the market, more commercial banks need to enhance their credit management level,reduce the occurrence of bad assets, a good grasp of the loan is a key ring, in order toenhance the strength, in the market occupies a space for one person.This paper summaries up on credit rationing theories and research achievements ofthe previous scholars from the perspective of information asymmetry. Then, the paperanalysis of China’s commercial banks and credit development and situation, summed upthe credit theory and game theory. Then, by using the game theory of symmetricinformation and asymmetric information under static and dynamic theory, paper analysis ofChina’s commercial banks and financial institutions credit, reputation in the important role,that how to make credit game repeated solution. And the paper also the analysis of thecommercial bank and high default borrowers, the banks can use the collateral and thelawsuit means such as reducing defaults.