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Benchmark interest rate

The benchmark interest rate is a universally referenced interest rate in the financial market. Other interest rate levels or financial asset prices can be determined based on this benchmark interest rate level. The benchmark interest rate is one of the important prerequisites for interest rate liberalization. Under the conditions of interest rate liberalization, financiers measure financing costs, investors calculate investment returns, and management's regulation of the macro economy objectively requires a universally recognized benchmark. Interest rate levels for reference. Therefore, in a sense, the benchmark interest rate is the core of the interest rate marketization mechanism.

Among them, countries with interbank rates as the benchmark interest rates include the London Interbank Offered Rate (Libor) in the United Kingdom, the United States Federal Reference Rate (FFR) in the United States, the Tokyo Interbank Offered Rate (Tibor) in Japan, and the European Union’s Euro Interbank Offered Rate (Euribor) et al.; countries with a repurchase rate as the benchmark interest rate are Germany (1W and 2W repo rates), France (1W repo rate), and Spain (10D repo rates).

In China, the interest rates for deposits and loans stipulated by the People's Bank of China for state-professional banks and other financial institutions are the benchmark interest rates. Specifically, the general average person regards the bank's one-year time deposit interest rate as the market benchmark interest rate index, while the bank uses the overnight call rate as the market benchmark interest rate.

Benchmark interest rate 2017

2017 Central Bank benchmark interest rate

The latest 2017Bank interest rateAccording to the latest bank deposit and loan interest rate adjustments, the Bank Information Portal has learned that the People's Bank of China has decided to reduce the benchmark interest rates for RMB loans and deposits of financial institutions from October 24, 2015 in order to further reduce corporate financing costs.

Among them, the one-year benchmark lending rate of financial institutions was cut by 0.25 percentage points to 4.35%; the one-year benchmark deposit interest rate was lowered by 0.25 percentage point to 1.5%.

The People's Bank of China decided to reduce the benchmark interest rates for RMB loans and deposits of financial institutions from October 24, 2015 to further reduce social financing costs. Among them, the one-year benchmark lending rate of financial institutions was cut by 0.25 percentage points to 4.35%; the one-year benchmark deposit interest rate was lowered by 0.25 percentage points to 1.5%; the benchmark interest rates for other grades of loans and deposits and the People's Bank of China adjusted the lending rates of financial institutions accordingly. Personal housingProvident Fund Loan Ratesconstant. At the same time, commercial banks and rural cooperative financial institutions no longer set ceilings on the floating interest rate for deposits, and they have also paid close attention to perfecting the market formation and adjustment mechanism of interest rates, strengthening the central bank's regulation and supervision of the interest rate system, and improving the efficiency of monetary policy transmission.

Since the same date, the RMB deposit reserve ratio of financial institutions has been lowered by 0.5%, so as to maintain reasonable liquidity in the banking system and guide the steady and moderate growth of money and credit. At the same time, in order to increase financial support for the "three rural" and the positive incentives of small and micro enterprises, the financial institutions that meet the standards will additionally reduce the deposit reserve ratio by 0.5%.

The benchmark interest rates for other grade loans and deposits were adjusted accordingly. (The interest rate is the latest bank interest rate in 2017, and the bank deposit loan benchmark new interest rate)

What does the benchmark interest rate mean?

The benchmark interest rate is a universally referenced interest rate in the financial market. Other interest rate levels or financial asset prices can be determined based on this benchmark interest rate level. The benchmark interest rate is one of the important prerequisites for interest rate liberalization. Under the conditions of interest rate liberalization, financiers measure financing costs, investors calculate investment returns, and management's regulation of the macro economy objectively requires a universally recognized benchmark. Interest rate levels for reference. Therefore, in a sense, the benchmark interest rate is the core of the interest rate marketization mechanism.

Benchmark Interest Rate Adjustment List

Loan base interest rate

The deposit and loan benchmark interest rate is the loan-guided interest rate issued by the Central Bank (PBC) to commercial banks and is one of the monetary policies used by the central bank to regulate the operation of the social economy and the financial system.

The commercial bank will set a combination of deposit interest rates based on this benchmark interest rate. Raising the benchmark interest rate means shrinking credit, reducing social mobility, increasing credit costs, and easing the pace of economic development. vice versa.

Corporate loan benchmark interest rate

The People's Bank of China Enterprise Loan Benchmark Interest Rate Standard

The interest rates of loans executed by different banks are different. Usually, the interest rate of bank loans is increased according to the benchmark interest rate of the central bank, and the rate of increase for each bank is different. The specific circumstances require the borrower to make inquiries. The People's Bank of China prevails.

The People's Bank of China decided to reduce the benchmark interest rates for RMB loans and deposits in financial institutions from October 24, 2015 to further reduce the cost of corporate financing. The current deposit and lending benchmark interest rate implemented by the People's Bank of China is based on the interest rate announced on October 24, 2015: the one-year benchmark lending rate of financial institutions is lowered by 0.25 percentage points to 4.35%; the benchmark one-year deposit rate is lowered by 0.25 percentage point. 1.5%.

With the adjustment of the interest rate of the central bank, the loan interest rates of major banks have also changed. As a company, the interest rate of bank loans directly affects the cost of the company. Corporate loans refer to a form of borrowing that requires the enterprise to meet the requirements of interest rates and deadlines for banks or other financial institutions for the sake of production and operation.