Block Chain Technology, Credit Rationing and SME Financing: Theoretical Basis and Application Scenario

Abstract

The decentralized advantage of block chain technology helps to improve the credit business model of commercial banks, and also provides an idea to solve the financing difficulties of SME.This paper compares the traditional bank credit model with the credit model embedded in block chain technology from a theoretical perspective, and analyzes the impact on block chain technology on the relationship among banks, enterprises and governments.The analysis shows that the credit model embedded in block chain technology can improve the information asymmetry between banks and enterprises and alleviate the problem of bank credit rationing; The credit platform based on block chain technology effectively solves the financing difficulties faced by small and medium enterprises.