As the price of capital, interest rate is important to the optimization of the market resources and the improvement of the socialist market economic system. The outbreak of the private lending crisis in 2011 implies that there is a big problem in the interest rate system or even the whole financial system. This chapter take a review and analysis of the process of the China's market-oriented interest rate reform and the problem in the financial system, then give some policy recommendations to the next step of reform. <<