A Study On Mechanism Of Development Financing To Reduce Transaction Costs In Credit Business

The economic development of a country can not be separated from the construction of some fields such as infrastructure.But the financing projects in these areas have the characteristics of long term,large amount and high risk,and the investment and financing activities of commercial finance are based on their operating principles of Safety,Liquidity and Profitability.So these fields that have an important role on economic development are difficult to get financial support from commercial finance.Practice in the world has proved that the special financial organization,development financing,can be a major providers of funds for those fields that need long-term investment and financing.The financial support provided by the development financing through these credit operations is not zero-cost.The information asymmetry can lead to adverse selection of and moral hazard in credit market that can bring transaction costs to credit markets participants,financial institutions.The dissertation combine the transaction cost theory and developmental finance theory found that the development financing can be a long-term funding providers,because it as a financial innovation can reduce the transaction costs in credit business.Based on the Matthews' view,this paper studies the specific contents of the transaction costs in the credit business,and analyzes the mechanism of the development financing to reduce the transaction cost according to the foundation,main line,method and principle of the operation.On the basis of the theoretical analysis,this paper measures the transaction cost of the credit business through the expenses of fee and commission and management cost of the financial institution,and uses the measurement method to study the influence of financing cost and asset quality to the transaction costs of the financial institution.And at the same time,according to the specific cases of the Guangxi's "South-to-North Vegetables Transfer Project",this paper studies how the development financing reduce the transaction cost in credit business.Through the analysis of theory and fact,the dissertation finally prove that compared with commercial banks and traditional policy-based banks,the development financial institutions can save the transaction costs in the credit business.And the dissertation puts some policy suggestions on reducing the transaction cost of policy-based financing commercial financing according to the mechanism of developing financing to reduce the cost of credit transaction.Traditional policy-based financing should pay more attention to constructing market and making innovation of mechanism,commercial financial institutions should pay more attention to the establishment of credit system and improving system about credit business.