Due to the moral hazard of enterprise project selection and loan repayment selection, the phenomenon of credit rationing has arisen. If moral hazard can be eliminated, then the credit market can reach Walras equilibrium (that is, all markets in the market system make supply and demand reach equilibrium through price movement. Under the equilibrium state, economic subjects only make their own behavior decisions according to price signals, leaving aside the time adjustment process from non-equilibrium to equilibrium, assuming that this process is completed instantly). So as to achieve the Pareto optimal state (that is, if the allocation of production resources and the distribution of wealth have reached such a state, then it is impossible to change the allocation of resources or the distribution of wealth by any method to make anyone's situation better without making anyone's situation worse). Measures to prevent moral hazard in the credit market are:

1. Strengthen enterprise credit rating and loan evaluation to minimize information asymmetry between banks and enterprises. Enterprises should strengthen the concept of credit, not only regard personal credit as intangible assets, but also try their best to maintain the credit environment of the whole society. Enterprises that evade debts should be jointly sanctioned to stop providing commercial credit to them. The government should strengthen the binding force of enterprises on accounting statements, rectify the credit environment, attach importance to the use of administrative means, and incorporate credit evaluation into enterprise performance appraisal.

2. Banks should strictly implement the credit governance regulations to ensure that the collateral provided by enterprises is binding on the repayment of loans by enterprises. Enterprises that evade debts shall be enforced by the court to collect debts according to law.

3. Improve the credit governance, punishment and incentive system. At present, banks are facing the dual pressures of increasing deposits and being unable to issue loans. Therefore, if banks want to explore and innovate, seize new growth points and increase effective investment in loans, they all need credit officers to have a strong sense of responsibility and work motivation, and emphasize that incentives are more in line with actual needs. Of course, those who violate the credit operation process should be investigated for responsibility in strict accordance with the rules and regulations. ?