Fig. 6: Illustration of the dynamic loan guarantee relationships in the guarantee network.
From: Evolution of the Chinese guarantee network under financial crisis and stimulus program
In time t, there are three guarantee relationships. Firm A was the guarantor for borrowers B and C. Firm E was the guarantor for borrower C. In time t + 1, the guarantee relationship between A and C was gone after C repaid the loans. Firm D became the guarantor for A, who was both a guarantor and a borrower. In time t + 2, the guarantee relationship between C and E was gone. Firm E became the guarantor for firm D. Firm A became the guarantor for firm D, which is also the guarantor for firm A. Firms A and D formed the mutual guarantee relationship (reciprocal edge).
