Abstract: Based on the theoretical analysis on collateral mechanism, this paper empirically researches the lending technologies which can effectively replace the collateral and further analyzes the reasons why it is difficult for certain lending technologies to be alternatives which can reduce the banks' collateral requirements for and ease the credit rationing of small and micro enterprises. The result of the study indicates that the collateral and the borrower default risk have a significant negative correlation; customer selection effect dominates the collateral mechanism; relationship lending technologies and guarantee lending technologies can significantly reduce the bank's collateral requirements. Meanwhile, it also shows that the substitution effects of financial statements and credit rating technology are quite weak. With the improvement of financial infrastructure, the substitution effect of credit rating technology is gradually emerging, but it would be difficult for the financial statements to substitute collateral even if they are audited. On the basis of the above, we suggest improving the financial infrastructure and the capability of risk assessment for the lending technologies.

Key words: collateral, effect mechanism, lending technology, substitution mechanism, information asymmetric