An Ethical Analysis on Moral Hazard in Chinese Finance

Moral hazard is the uncertainty that the social participants or the application of social measures face in the process of the daily operation.Financial Moral hazard is the reflection and embodiment of the moral hazard in the financial industry.The paper specifies the nine fundamental attributes of financial moral hazard,and puts financial moral hazard into three categories,namely,individual,social,and normative.In this context,the paper lists the four reasons that result in the financial moral hazard as personality-induced,unhealthy social environment-induced,moral self-induced,financial characteristics-induced.Finally,the paper put forward the basic principals and main solutions to guard against the financial moral hazard.