According to the stipulation of "circulation of stock (or joint stock) can be taken as the bank loan pledge"in Guarante Law in the Peoples Republic of China ,this article expoundes the risks of economy and policy as the stock was being the loan pledge especially from the banks point of view.

On the stock collateral loan and pattern innovation;

The paper analyzes the risks created by stock collateral loan for those commercial banks which provide financing and points out the key countermeasures for taking precautions against risks are to choose high quality security companies and stock,and to reinforce the guard against risks of stock liquidity and listed companies.

On inventory pledge loan,creditor can screen on borrowers with asymmetric information of ex ante default possibility,when taking into account borrowers\' signaling action by acquiring a credit score.