Impact of Falling Bank Interest Rates on the High Quality of Business Development

In the context of encouraging financial support entities in China, this paper studies the impact of the decline of bank interest rate on the high-quality development of enterprises from the perspective of financing constraints and enterprise technology innovation. The study has found that the decline in bank interest rates can promote the high-quality development level of enterprises. Further channel analysis shows that the decrease of enterprise financing cost caused by the reduction of bank loan interest rate will make enterprises increase their investment in technological innovation, so as to improve the high-quality development level of enterprises. This paper has some enlightenment for understanding the positive role of financial support entities and improving the high-quality development level of enterprises.