Information asymmetry and credit market risk

This paper argues the forming mechanism of credit risk under the condition of information asmmetry in information economics . First, it analyzes adverse selection and moral hazard caused by information asymmetry and its corresponding credit risk. Second, it analyzes the types of manifesting behavior among participator in the present credit market of our country. Last, it proposes some advices to improve credit risk management of commercial bank and the condition of information asymmetry.