The Impact Of The Loan Interest Rate Liberalization To The Scale Of Financing Of Small And Medium Enterprises

The small and medium-sized enterprises financing difficulty is always a problem in China, this is not only a special phenomenon in China but a worldwide problem, the interest rate is not fully marketization is one of the important causes of the financing difficulties of SMEs in china. Based on the international experience of marketization of interest rate, by using the date of the SME board listed companies, analyzed from the aspect of principle of the financial accelerator, discussed with the releasing of deposit and loan interest rates, the opportunities and challenges small and mediumsized enterprises encounter in financing.The financial system is an important force in the normal operation of the support to the economic system, with the development of the financial system, the development of economics depends more and more on the financial system. China’s financial system includes banks, securities, funds, all these are built on the "credit", so the collapse of the financial system means the collapse of trust, and if trust is lost, the enterprises would be hard to line up financing, the real economy Remain stagnant, so the rapid development of modern economy depends directly on the financial system Therefore, since1996China implemented market-oriented interest rate reform, to improve the function of the financial market, let the financial market playsa role of promoting financial system in economy.In this paper, in the foundation of analysis of the existing literature, reference the impact of foreign interest rate marketization reform to the small and medium-sized enterprises, analysis along with the market-oriented interest rate reform, national credit spreads will show a narrowing trend, the direct financing market will be more developed, which will make the competition between commercial banks, change traditional models of their profitability, accelerate the innovation of financial products. Commercial banks in order to look for new profit growth point, will increase the scales of loans to SMEs, because there are more financing opportunities in small and medium-sized enterprises. Based on the reference of foreign interest rate marketization experience, from the theoretical analysis with the liberalization of deposit and loan interest rates, credit spreads narrow, direct financing market expands, small and medium-sized enterprises obtain their loans easily. China is still relay on the bank financing system compared with direct financing, indirect financing scale is still the main mode of financing, market-oriented interest rate reform will undoubtedly change Chinese financing mode.The financial accelerator theory was proposed by Bernanke, based on the principle of information asymmetry, that is because of the information asymmetry, the financing enterprises’internal and external financing cost premium, so when the financial system fluctuations, changes in credit will lead to multiple changes into the enterprise financing scale, it will lead to huge fluctuations in economic system. With the development of the market interest rate in our country, the external financing channels diversified, increasing information demand, increase the credit financing based on scale, the financial accelerator effect will be more and more remarkable. At the same time as the double asymmetry of financial accelerator effect, the financial accelerator effect relative to the small and medium-sized enterprises indicates bigger than large enterprises Therefore, based on the principle of the financial accelerator, with the marketization of interest rate of progress, the deposit and lending interest rates continuously opening up, small and medium-sized enterprises will be easier to access financing, it brings opportunities to the small and medium-sized enterprises. Another asymmetry of the financial accelerator, the coefficient of financial accelerator in the economic downturn is bigger than the boom, this will bring challenges to the financing of small and medium-sized enterprises. In this paper, based on the above theory, using the panel data separately from the stock index and the small and medium-sized panels in selected quarterly financial data of20listing Corporation, an empirical analysis of the asymmetry of the financial accelerator effect, verified with the liberalization of deposit and loan interest rates, the effect of financial accelerating in our country is more and more obvious. The innovation of this paper is in order to examine the influence of China’s capital market on the financing of enterprises, the author introduces the Tobin Q model in the empirical analysis, the Q value is greater than1on behalf of the enterprise market value is greater than the net assets, less than1is on the contrary, the introduction of the Q value in the financial accelerator coefficient measure process, can affect the measurement of asset price on the level of corporate investment. The conclusion of the study shows that the influence of investment on the enterprise’s asset prices is not significant, our capital market is still underdeveloped.So if you want to solve the problem of SME financing problems, promoting market-oriented interest rate reform from the system needs to be done, it also needs the government, financial markets, banks and businesses make concerted efforts.The policy should be given to support the financing of small and medium enterprises; second, we must continue to improve the development of the financial market:to encourage the bond market and direct financing methods; encourage the development of risk investment funds; to improve government’s risk prediction ability. Perfecting the financing system of small and medium-sized enterprises is a complicated process, should be combined with China’s unique management system, analyses the causes of the financing difficulties and proposed solutions.