The Research on Credit Risk of Business Groups based on Related Guarantee

The phenomenon of related guarantee is widely exists in the operation of business groups. This related guarantee complicates the credit risk of business groups in one hand and makes the risk control more difficult of commercial banks in the other hand. In this paper it proposed a theoretical model to describe the basic mechanism of credit risk in business groups based on structure model. Then it also analyzed the effect on credit risk of business groups of related guarantee empirically. The research results show that the relationship between amount of guarantee and intensity of credit risk contagion is nonlinear and the different structure of guarantee will bring different influence for credit risk of business groups