The Research for the Rate of the Risk Compensation Based on the System of Incentive and Restraint

Our passage brings up some reformed methods according to the current student loan policy of risk compensation. In Bayesian model, we can analyze default rate based on consecutive default rates of several years of a bank, thus obtaining an overall default condition of this bank. Then by standardizing these data, we can gain the final risk compensation rate of this bank. Compared with the current compensation system of student loan (the risk compensation rate of every commercial bank who participate in the student loan is 15%), our main contribution10 is that the government can differentiate each bank´s risk compensation rate according to this bank´s behavior in reclaiming the loan, so we can reach the target of incentive and restraint of commercial bank.