Research On The Financing Of The Small And Micro Enterprises Based Freedom Of Interest Rates

Interest rate mechanism occupies a decisive position in the financial system. By the reform of the financial system, the defect of the control of the interest rates becomes more obvious.Therefore, unlocking the control of the interest rates and marketing the interest rates are inevitable choices. Peoples bank of China announced to unlock the loan interest rates and paper rates, to open the interest rate cap of the rural credit cooperatives, and to keep the individual housing loan interest rates on20th, July, this year. Those messages above shows that a new round of the financing reform is coming. This paper try to offer several useful research results to the micro and small enterprises under the environment of the freedom of the interest rates.Micro and small enterprises are the main forces of the stable development of the economics and the society.However, the financial resources of these enterprises is limited. This paper analysis the effect of the market reform on the financing environment, from the respect of the freedom of interest rates. Firstly, this paper gives a latest definition on the micro and small enterprises, it also shows that the important status of these enterprises with data. And considering the problems which these enterprises are facing, this paper analyzed the reasons. Secondly, through studying the cases happened in the USA and Japan, this paper shows the effect of the freedom of the interest rates on the financing. In China, the financial environment used to impeded the development of these enterprises,then this paper analyzed the opportunities brought to the micro and small enterprises in China from the four aspects of the interest rate, the commercial bank, the financing pattern and the insurance. This paper also choose three cases to expose the change of the financing environment and the effect of the freedom of the interest rates on the financing, the financing case of Zhe Jiang WANSHENG Machine Co., Ltd, the case which BB bank’s financial innovation eased the financing problems of the micro and small enterprises, the case of the securitization of the Alibaba.Com. Lastly, Combining the theoretical analysis with the practical circumstances in China and the world’s leading experience, to offer several constructive suggestions to help the micro and small enterprises to seize the opportunities from the freedom of the interest rates.