The Solutions to Private Enterprises' Loan-based Financing

High credit-risk is not only the main reason restricting credit-financing,but also a focus in the bank's credit-risk management.With regard to credit-financing supply demand,the paper discusses the credit-risk. In order to relieve the information asymmetry and credit-risk between bank and private enterprises,the key is to im- prove the credit-risk management by way of system innovation.Private enterprises should also regulate their manage- ment.In this case both banks and enterprises can achieve the mutual benefit and development.