A Three-Stage Game Analysis of Private Lending Rate Ceiling: Necessity, Impact, and Solution

The ceiling on private lending interest rates is a powerful financial tool to maintain stability and reduce usury. Especially now that peer-to-peer has encountered some challenges, the an essential way regulate this market. purpose of paper analyze necessity impact such also find optimal solution determine it. proves inevitable choice by using evolutionary game. However, it shown lowering will increase both difficulty financing for SMEs default rate. Two solutions are obtained in study, which prevent borrowing costs.