Research On Internet Financial Credit Reporting Issues Based On KMRW Model

With the role of credit in economy increasingly prominent, our country established the first credit bureaus in late 1980 s and early 1990s-- Chinese credit bureaus, and thus opened our development process of credit reporting industry. Recent years, with the emergence and rapid development of internet finance, as well as the innovations of internet financial products impact on traditional financial monopoly, it has promoted the financial market-oriented reform further. The attendant problem is internet financial systemic risk caused by network and virtualization,that’ s why we need to build the internet financial credit reporting system and improve the credit information disclosure quality of internet financial transaction, thus to provide a healthy and integrity environment for the development of internet finance.Whether Gross man & Hart model of incomplete contract theory or Williamson’s transaction costs theory, they not only confirmed a truth that the interaction effect of opportunism and reputation can reduce transaction costs, but also provided a theoretical basis for the importance and necessity of credit reporting system in the market-oriented economy. Based on the implementation of "Credit Industry Management Regulations" and the status of Internet financial development, this article is to study the necessity and feasibility of the Internet financial credit reporting system construction. After that, it explore the specific measures of China’s Internet financial credit reporting system construction in order to improve the social credit reporting system construction and provide new ideas for the Internet financial credit reporting theory.Reviewed relevant literature of credit reporting and internet finance, we can find that there are rare scholars use modern credit rationing theory and game theory to study the two issues together. Foreign credit reporting industry started earlier and has already gained a very mature development. Most foreign researches have focused on empirical analysis of the different effect on financial development between public credit institution and private credit institution. Our credit industry started very late, so most scholars studied credit reporting system from the perspective of comparing aboard and learning the experience. Furthermore, about the internet finance, most scholars focused on its impact on the commercial banks. Therefore, this paper attempts to use the methods of models analysis and theory testing to study the Internet financial credit reporting issues.Started from the situation of China’s credit reporting system construction and based on the modern credit rationing theory, this article intends to discuss some issues of internet financial credit reporting after analyzing the status quo of China’s internet finance development, Firstly, via the theoretical analysis of how the internet finance impacted on commercial banks’ credit monopoly, the paper elaborates the microscopic mechanism of the process, and then draw the meaning and importance of internet financial credit reporting. Then, through the game theory analysis of internet financial credit reporting and internet credit, the author sums up the role of entirely credit information in financial system reform and the feasibility of internet financial credit reporting system. Based on the model analysis and theory testing, as well as the experience of Ali credit reporting model, the paper proposes some suggestions and ideas for developing and perfecting the construction of internet financial credit reporting system.