The Effect Of Interest Rate Limit Release On Chinese Financial Intermediary Efficiency

Following the 21cn's coming, global financial system has stepped into new finance era. Worldwide current of financial liberalization has spread to China. Simultaneously, Chinese government is releasing financial restriction steeply. As the core of financial liberalization, Interest rate limit release has become the all-important target of Chinese financial system reform. In addition, financial intermediation as the most efficient financing means has received much concern during the course of market-based reform of interest rate. And the reform is bound to affect the efficiency of financial intermediation.Basing on the capital distribution efficiency of the system of Chinese financial intermediary, the way Interest rate limit release affecting efficiency of financial intermediation is analyzed.Firstly, current status of financial intermediation is stated, and the forming reason of "massive non-performing loans" "troubles in private small & medium-sized getting loans"---tow disadvantages of Chinese financial intermediation are explained in this dissertation. Then, two main influences to interest rate---"bilaterally sharp raise of interest rate " , " interest rate permanent fluctuation " caused by reform of the interest rate system is analyzed ,and change of interest rate is it that can influence financial intermediary market participant in decision. Basing on utility theory and considering risk premium, impact on loan enterprise's and intermediary's behavior of the interest rate change is discussed. And then draw the conclusion: The interest rate change brought by limit release will cause the negative effect on effective investment rate and deposit conversion ratio of China. Finally, the real data is used to confirm above view and the conclusion part give some suggestions to dispel or reduce the negative effect.