The Research Of The Interest And Pledge Rate In FTW Loan Based On The Game Theory

With China’s rapid economic development, more and more number of small and medium enterprises comes up.But these companies are facing a bottleneck restricting their development, such as the lack of talent and a shortage of funds, the latter of which is particularly serious. Traditional bank loan business often requires real estate as collateral or a guarantee company, both of which are precisely the SMEs lacking. So it is difficult for these enterprises to solve the funding problems in the traditional mode. Therefore it is extremely important to find a new lending model.FTW is a innovative services integrating logistics and finance, in which logistics company supervises the pledge instead of bank with professional. So the bank can focus on the financing level. Therefore the bank is willing to accept estate as collateral. For enterprises, they can enjoy the professional financial services and logistics services.Most traditional research focus on one of the three participants in FTW, when considering the market as a exogenous variable. But in fact, they are very close among FTW, and any of the one’s decision will affect the rest of the both. At the same time, the additional supply depending on loan will impact the product market too. The biggest innovation of this paper is that considering the three participants as a system. Each one’s decisions become the remaining two’s endogenous variables of revenue function. Then I will integrate the complex reactions by the game theory and obtain the target variables leading to largest gains finally.The starting point of the article is that each participant pursues the largest revenue. Then establish and solve the model with some certain assumptions. The main variables include the bank’s interest rate and pledge rate and the charging policy of logistic company.. The results show that the more suppliers in the market, the higher of the income and the interest rates. The Game between the logistic companies and banks will reduce the supply of the market, and reduce their income. If they cooperate, both of them can get more revenue than competing.