Game Analysis Of Credit Village Model Research And Policy

The modern rapid economic and social development, the connotation of financial institutions and facilities improve, the constant sound of the financial regulatory system, to provide services for the socio-economic development and power, the most representative is financing. Bank loans financing the different customer groups, farmers, mainly in agricultural production or manual manufacturing companies as well as small enterprises vulnerable groups should get more attention. Micro and small enterprises not only to promote economic prosperity, but also help to solve the employment, strengthen market competition, is an important core of promoting rural economic development and the development of agriculture, the elimination of the gap between the rich and the poor and promote economic progress.In the areas of finance and economics, the credit can be defined as a particular form of the exchange of products and the distribution of funds, debt service based lending relationship. Credit based on investment and financing market, so that the different economies participants to establish economic relations of exchange and allocation of funds, so that the optimal allocation of resources, regulate and promote the rational economic development of the remaining sectors of society. At the same time, financing is the most important driving force for the development of SMEs, is also the biggest bottleneck restricting its development. The credit rationing biggest obstacles to development of the market, the difficult financing narrow pathway in response to small business owners loans due to credit rationing farmers, credit village model came into being.Credit Village mode is a new lending model, its operation in many rural areas of the country, the more successful attempts, such as postal savings branches in Chongqing Banan District Branch of the first pilot "the Credit Village" building, Gansu cc Off Credit Village of construction.sues and the plight of the credit village mainly as follows:(1) information discovery capabilities and more subject to the constraints.(2) group guarantee loans operability.(3) the financial system mechanism is not fully developed. The manifestation of these problems are many.Information economics point of view, the market participants are rational, while asymmetric information between the various economic agents on the market, the market does not automatically achieve the optimal allocation of resources Pareto optimal. The problem of information asymmetry is the core of the economics of information, its analysis of the framework is the principal-agent model. Asymmetric information agent, so there’s the problem of adverse selection and moral hazard.This paper is the establishment of the two models, the first run credit village mode is bank customer screening stage. The set of all participants in the game as well as utility parameters to establish the game relationship to draw ordinary loans and credit village loans two game matrix, then the utility of the comparison and analysis. The second model analytical framework is the principal-agent model, and the general form, in the mode of repayment of credit village stage to introduce the variable z, the supervision teams guaranteed loans by banks as directly observable exogenous variable.