Research Funding Strand Breaks In The Process Of Corporate Clients, Commercial Bank Credit Management Practices

Capital chain rupture of firm could lead to "dominos", specially, the bank is the first victim, suffering the threat of losing its credit property. Study on the cause of capital chain rupture of firm is the base of preventing. Based on information asymmetry, the dissertation use game theory firstly to build the Nash equilibrium between single bank and firm, which find the lost of credit in the society is the external factor influencing the capital chain rupture. Then the dissertation analyze the game between two banks and one firm through the theory of perfect Bayesian equilibrium and explain the mechanism of collective rupture of the capital of the firm ,which called herding effect, so the internal institution of the bank is the internal factor influencing the capital rupture. The study of particular external and internal behavior of commercial bank in china administers to study the cause of capital chain rupture of firm forming more deeply, then the dissertation find the cause of the commercial bank deal with the capital chain rupture risk difficultly. Finally, the paper discusses the risk prevention on the side of commercial bank and the government based on the reasons to cause the capital chain rupture.