Open AccessThe Impact and Stability Analysis of Commercial Banks’ Risk Preference on SMEs’ Credit Financing Based on DSGE Model
Author(s) -
Di Gao,
Zhaohui Hao,
Jiangming Ma,
Hong He,
Meng Li
Publication year - 2021
Publication title -
mathematical problems in engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.262
H-Index - 62
eISSN - 1026-7077
pISSN - 1024-123X
DOI - 10.1155/2021/1528607
Subject(s) - dynamic stochastic general equilibrium , preference , interest rate , business , finance , financial stability , credit risk , microfinance , financial system , economics , monetary policy , monetary economics , microeconomics , economic growth
As an important driving force for China’s economic transformation and upgrading, the problems of financing difficulties and expensive financing for SMEs have become increasingly prominent. The main objective of this paper was to analyze the impact of financial intermediary departments’ risk preference on corporate finance. Under the revised DSGE framework, this paper discusses the impact and stability analysis of commercial banks’ risk preferences on SMEs’ financing. The results show that positive interest rate shocks inhibit commercial banks’ credit to SMEs, and with the increasing weight of commercial banks’ risk preference for default rate, the trend of credit repression will be intensified.