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Indexed by:会议论文

Date of Publication:2016-01-01

Included Journals:CPCI-SSH

Page Number:265-269

Key Words:SMEs; Group Lending; Incentive Compatibility; Optimal Lending Rate

Abstract:The paper presents a model of optimal loan pricing for SMEs group lending under the perspective of incentive compatibility. The optimal lending rate is gained from the model by weighing the benefits of both bank and SMEs. This paper also empirically test the model, the simulations suggest that banks can achieve the win-win situation with SMEs by adjusting loan rate and the degree of joint liability. This optimal loan price may help SMEs out of financing trouble and help banks attract more high-quality SME customers.