Is the Limit of Four Times the Primary Interest Rate of Loan Reasonable  

作　　者：HU Yuan-cheng 

机构地区：[1]Jiangxi University of Finance and Economics, Research Center for Financial Development and Risk Prevention

出　　处：《当代财经》2013年第S1期57-68,共12页Contemporary Finance and Economics

摘　　要：On the basis of the observation of the real earnings rates and the debt repayment ability of China’s enterprises,considering the maintenance of the normal order of the borrowing and lending markets,this paper believes that a 20 percent level of interest rate or rate of return is a suitable cutoff point for the up limit,which is in line with China’s conditions.For this reason,we recommend that the primary interest rate of three times of the loan should be adopted to determine the up limit of annual rate of private borrowing and lending allowed by policy,this is relatively consistent with China’s current reality.On the basis of the observation of the real earnings rates and the debt repayment ability of China’s enterprises,considering the maintenance of the normal order of the borrowing and lending markets,this paper believes that a 20 percent level of interest rate or rate of return is a suitable cutoff point for the up limit,which is in line with China’s conditions.For this reason,we recommend that the primary interest rate of three times of the loan should be adopted to determine the up limit of annual rate of private borrowing and lending allowed by policy,this is relatively consistent with China’s current reality.

关 键 词：private BORROWING and LENDING PRIMARY interest rate return on assets DEBT REPAYMENT ability 

分 类 号：F832.4[经济管理—金融学]