An Analysis In Property Right Defects And Influence Of Interest Rate Marketization In China

The interest rate is the price of using the fund, reflects the debtor's financing cost, and is one of important variable that influences the economic. Interest rate marketization refers that the monetary administrative authority to give the power to make decision of the interest rate to the market, market objects determined the interest rate acting on one's own . The theory of market-based interest rate is generally seen in financial development and theory of deepening of the finance while studying the relation between finance development and economic development, McKinnon and Shaw(1973) find that developing countries generally have the problem that " Financial Repression " , namely the government controls strictly the interest rate, and makes the level of the true rate of interest in ultraslow state for a long time, even often negative value. This kind of interest rate controls causes the low-level depositing money and excessive fund demand, and then causes the state of cutting apart of the financial market, the fund disposes efficiency low,.market behavior is twisted, so that which has formed a kind of vicious circle state between the financial development and economic development of developing countries. So, they think developing countries want to promote the economic growth, they must dispel the finance to suppress , implement the financial liberalization policy, and deepen the direction to march towards to the financeBut interest rate marketization could go on smoothly only under certain macro and micro condition . This text only carries on the discussion on property right conditions of the micro subject in the macro and micro condition . At financial market, As both sides of the debit and credit sides micro subject, bank and enterprises determine interest rate and is influenced directly by interest rate . No matter the bank or enterprises, the intact property right is its prerequisite which is engaged in the micro financial activity. The intact property right includes the right of enjoying of the income , the right to use of resources ,and power of alienation. To bank, have intact property right only, it determine high or low prices , interest rate of level independently according to fund supply and demand change among the business relation in real fund probably. To enterprise, only have intact property rights too, it will turn a goal the most greatly with enterprise's income , care level , financing of cost really , so intact property right is prerequisite and foundation of forming balanced market interest rate .Property right of micro subject refers to the property rights of state-owned enterprise and state-owned bank . Under our country's state-owned property right, agent , as theuser of the right, which is choosed by government . because of his use for resource and transfer, the distribution of and the last achievement does not have abundant powers and functions , so the state-owned property right is incomplete . Just because state-owned property right is incomplete , it can't well carry out the due function of the property righto The state-owned property right has no main part of property right of a personification, its client is a government, the government has not encouraged restraining from and supervising the agent . Moreover the government often deviates from the profit to maximize in order to pursue its political interests as the entity of state power, therefore it has the inclination that considers from political interests but not economic benefits to have too while choosing the agent. So state-owned property right defects will make encouragement and tied mechanism of "principal-agent" mechanism not work It is asymmetry to this kind of right and responsibility of agent because of the property right of state-owned that has caused the moral hazard in China's meaning asymmetrically. This kind of moral hazard is not the moral hazard in the general meaning formed because of information asymmetry. The latter means the client and agent cause because the client can't spot the agent's action after signing a contract, the former whether client (government) can spot action (if manages improperly ) of agent (the manager ) after signing in contract, but because lacking encourage and tied mechanism , the moral hazard will make the contract cause rigidly while performing practically no function. The agent here chooses one's own action according to the goal that one's own utility maximizes, and is hardly restrained by the client, the agent will not be punished because of damaging the client's interests After interest rate marketization, just because this kind of moral hazard of the bank and enterprise makes us be unable to obtain the prospective earnings of market-based interest rate, it is the market-based reform of interest rate that runs counter to desire. So this text sets about from this basic factor of the property right, points out that only carries on the property right reform of the state-owned bank and state-owned enterprise , realizing the property right pluralism, interest rate marketization could go on smoothly .