The analysis on mutual credit guarantee principal-agent mechanism

By using the allocation of guarantee rate savings as incentive mechanism and introducing the influence coefficient of the other SME´s relative guarantee rate savings, the principal-agent relationship of mutual credit guarantee institutions and small and medium-sized enterprises (SMEs) was investigated in this paper. It was proved that the larger relativity of guarantee rate savings among the guaranteed SMEs could bring much higher incentive intensity of mutual credit guarantee institutions to SMEs; compared with non-mutual credit guarantee, mutual credit guarantee was more helpful to improve the incentive intensity of credit guarantee and raise the effort level of SMEs under asymmetric information, besides, the mutual credit guarantee was beneficial to save agent cost; the operational mode of credit guarantee cannot affect the optimal expected profit for credit guarantee under symmetric information.