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SHIBOR

Edit: Rong 360 finishing Source: Rong 360 Date: 2014-03-24

Summary:

SHIBOR is the Shanghai Interbank Offered Rate, which is the short-term loan interest rate between banks.
 
1 Introduction
Shanghai Interbank Offered Rate (Shibor) is the arithmetic average interest rate determined by the RMB inter-banking rate calculated by banks with higher credit ratings. It is a single interest, no guarantee, and wholesale interest rate. [1]. Currently, Shibor varieties announced to the public include overnight, 1 week, 2 weeks, 1 month, 3 months, 6 months, 9 months and 1 year.
The Shibor Quotation Bank is now composed of 18 commercial banks. The quotation bank is a one-offer in the open market or a market maker in the foreign exchange market. The renminbi is relatively active in the Chinese currency market and the information disclosure is relatively full. The People's Bank of China established the Shibor Working Group to determine and adjust the members of the quotation bank group, supervise and manage the Shibor operation, standardize the quotation line and the designated issuer's behavior in accordance with the “Shibor Implementation Guidelines of Shanghai Interbank Offered Rate”. The National Interbank Funding Center is authorized to calculate and publish information on Shibor. According to the quotation of each quotation line on each trading day, the highest and lowest quotations are excluded. After the arithmetic average calculation of the remaining quotations, the Shibor of each term is obtained and released at 11:30.
 
2, the role
Shibor promoted the rapid development of the money market.
In 2007, the total transaction volume in the inter-bank market totaled 71.3 trillion yuan, an increase of 32.2 trillion yuan over the previous year, an increase of 82%. Among them, the total amount of borrowing transactions was 10.6 trillion yuan, an increase of 395% over the previous year; the total amount of repo transactions was 44.1 trillion yuan, an increase of 68%, both hitting record highs. The lending exchanges with quotation lines accounted for 94% of the total, and the repo transactions accounted for 80%. The long-term lending and repurchase transactions totaled 190.4 billion yuan, an increase of 101% over the previous year. There were transactions at a critical time limit, which made up for the long-term trading gap in the money market.
At present, Shibor has formed a benign interaction pattern with the development of the money market. Shibor is widely used in pricing market products.
First, Shibor's guidance on the pricing of bond products continued to increase. In 2007, a total of 99 billion yuan of floating-rate bonds based on Shibor and 137.6 billion yuan of short-term financing bonds were issued, accounting for 18%, 41% and 97% of the total market issuance respectively.
Second, the financial innovation products based on Shibor were active. The interest rate swap was 28.5 billion yuan, the forward interest rate agreement was 1.05 billion yuan, and inter-bank loans, interbank deposits and wealth management products were about 130 billion yuan.
Third, the bill-to-discount and repurchase business initially established a market-based pricing mechanism based on Shibor.
Fourth, the internal fund transfer price of the quotation bank has been combined with Shibor to varying degrees. The financial market is forming a pricing group based on Shibor, and the price relationship between various interest rates is becoming more reasonable and clear.
 
3. Historical data
On June 20, 2013, the overnight Shibor interest rate hit an all-time high of 13.444%.

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