Research on the Loan-to-Value Ratio of CERs Financing

This paper focuses on the loan-to-value ratio of CERs financing when enterprises have CERs in current or in future. And it comes to a conclusion that the bank has a right to choose to face the default risk or not by the loan-to-value ratio when the enterprise takes the current CERs to pledge. Finally, a model of the loan-to-value ratio in which the bank has downside risk is built and the ratio can be solved.