Abstract
Should interest rates be regulated and priced by the government or determined by the market? This article is based on the loan market interest rate quotation system reform implemented in China in 2019. Using data from 2016 to 2022 on bank loan credits obtained by Chinese listed companies, it was found that the marketization of loan interest rate quotations increased the credit amount these companies obtained from banks. The mechanism behind this involves the effects of information and competition. Further research found that compared to state-owned enterprises, the impact of the market-based interest rate quotation system on increasing the bank loan credit amount is more significant in private enterprises. In addition, the marketization of interest rate quotations has increased the credit term of corporate loans, reduced the need for collateral, and decreased the probability of default.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
