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Research on Decisive Mechanism of Internet Financial Interest Rate

  • Shengdong MuEmail author
  • Yixiang Tian
  • Li Li
  • Xu An Wang
Conference paper
Part of the Lecture Notes on Data Engineering and Communications Technologies book series (LNDECT, volume 1)

Abstract

This article studies the decisive mechanism of the Internet financial interest rate. Considering the possibility of basic symmetry for the credit information in the internet financial market with the application and development of the big data technology, a Nash Bargaining Module is established in the article, which includes the main decisive factors of the Internet financial interest rate (the program natural risk, program rate of return, loan period, loan scale, loan urgency, operating capacities of the borrower, the competition of the credit market, and the regime risk) as variables for analysis of their effects on the internet financial interest rates. According to relevant researches, the uncertainty of the loan projects in themselves and the costs for the implementation of secured credit contracts, rather than the reverse selection and moral risks arising from information asymmetry, form the main issues of the Internet financial interest rate.

Keywords

Internet finance decisive mechanism of the Interest rate Nash bargaining solution 

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Shengdong Mu
    • 1
    Email author
  • Yixiang Tian
    • 1
  • Li Li
    • 1
  • Xu An Wang
    • 2
  1. 1.School of Management and EconomicsUniversity of Electronic Science and Technology of ChinaChengduChina
  2. 2.Engineering University of CAPFXi’anChina

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