Credit guarantee contract model based on asymmetric information

In practice, the credit guarantee institutions plan the credit guarantee contract bases on the average success probability or expected revenue without considering the risk level of small and medium-sized enterprise’s (SME’s) investment projects, which is not fair on SME with different risk. This paper builds a credit guarantee contract model based on the guarantee rate and counter-guarantee measure value. When different risk types of SME accept the same guarantee rate, the counter-guarantee measure value provided by them is equal. When different risk types of SME accept the different guarantee rate, the higher risky SME prefer accepting lower guarantee rate and providing higher counter-guarantee measure value, while, the lower risky SME are just the opposite. Guarantee institute can judge the risk type of SME exactly through SME with different risk selecting guarantee contract, which makes the guarantee contract more scientific and reasonable. This is the paper style requirement for the Chinese Control and Decision Conference.