Credit-risk decision mechanism (CRDM) with incentive effect under asymmetry information

In this paper, we consider that there are two types of loan entrepreneurs in society: one is high-risk type and the other is low-risk type. We study Credit-risk decision mechanism (CRDM) with incentive effect under asymmetric information. W introduce the theory and method of incentive mechanism design to the research. We establish a credit-risk decision model from the point of view of the risky minimization of credit money. We give both the incentive compatibility constraints and the individual rationality constraints. In addition, we also get a sufficient and necessary conclusion the bank offers the same rationing to the two types.