A study of the equilibrium between interest rate selection and credit extension in banks

Currently,China's economy is developing rapidly and at the same time the difficulty of fund-raising has been an obstacle for the development of small and middle enterprises owing to various factors.For a long time being,the domestic academic research has been focused on credit rationing and interest rate in the credit market.However,little attention has been paid to the credit rationing decision process of banks and enterprises.Beginning with the balance of credit market,this article mainly analyses the basic rule of credit rate selection in credit markets,optimizes the rate and the reason for credit rationing which can be used as a reference for the macroeconomic adjusting in China.