Interest rate floating refers to a certain degree of floating on the original interest rate level to form a new interest rate. For example, a company needs to borrow 5 million yuan from other units to supplement its working capital. Due to the shortage of social funds, the loan interest rate has an upward trend. After negotiation, the loan interest rate rose by 10%, and the original loan interest rate was 5%. After increasing 10%, the new loan interest rate is 5.5%.
2. What is the floating basis of bank loan interest rate?
1. is conducive to highlighting the credit policy and business characteristics of China Bank. Preferential interest rates are given to foreign trade enterprises, foreign-funded enterprises, foreign affairs enterprises and large and medium-sized export production enterprises with good benefits.
2. It is conducive to promoting the development of related banking business in China. Temporary loans for customers who borrow more from our bank and loans for customers who handle import and export settlement business and intermediary business in our bank can be given appropriate care in terms of interest rate standards.
3. Conducive to the proportion of credit funds and debts and its cost structure. The floating range of loan interest rate should refer to the amount of loans borne by the bank's comprehensive capital cost and the decline of interest rate to determine the total amount of loans with rising interest rate. The interest rate structure used by the source of funds is appropriate.
4. Conducive to the risk management of credit assets. In principle, low-risk loans are real. For enterprises whose own funds can not reach a reasonable proportion, or whose financial and credit ratings are low, it is necessary to promote their profits through interest rate means.
3. What is the fluctuation of loan interest rate?
After the interest rate stipulated by the People's Bank of China is implemented, commercial banks can go up or down, and the floating range is clearly stipulated by the People's Bank of China.
4. What is the floating interest rate? What's the difference between fixed interest rate and fixed interest rate?
What is the floating expected annualized interest rate? The floating expected annualized interest rate is the expected annualized interest rate that can be adjusted regularly during the loan period. According to the agreement between the borrower and the lender, one party makes adjustments at a specified time according to the expected annualized interest rate of a certain market, and the general adjustment period is half a year. The floating expected annualized interest rate increases the cost because of complicated procedures and various calculation bases, so it is mostly used for loans in the international financial market for more than three years. The expected annualized interest rate can be divided into fixed expected annualized interest rate and floating expected annualized interest rate according to whether the expected annualized interest rate changes during the existence of the monetary fund lending relationship. The floating expected annualized interest rate refers to the expected annualized interest rate that is adjusted accordingly with the change of prices or other factors during the loan period. When signing a loan agreement, the borrower and the borrower may agree that the expected annualized interest rate can be adjusted with factors such as prices or other market expected annualized interest rates. Floating expected annualized interest rate can avoid some disadvantages of fixed expected annualized interest rate, but the calculation basis is diverse and the procedures are complicated. China's medium-and long-term savings deposit subsidy method is a form of floating expected annualized interest rate system. The expected annualized interest rate can be adjusted at any time according to the change of the expected annualized interest rate in the market. It is often calculated by adding the basic expected annualized interest rate. Usually, the expected annualized interest rate of loans or commercial paper of the most reputable enterprises in the market is set as the basic expected annualized interest rate, and then raised to 2 percentage points as the floating expected annualized interest rate. Repay the principal at face value at maturity, and pay interest at the specified interest payment period and the floating expected annualized interest rate. Difference between fixed expected annualized interest rate and floating expected annualized interest rate (1) Basic difference: The basic difference between fixed expected annualized interest rate and floating expected annualized interest rate lies in whether the expected annualized interest rate can be adjusted during the loan period. Based on the expected annualized interest rate determined when the loan relationship is established, the expected annualized interest rate that is not adjusted during the loan period is a fixed expected annualized interest rate. On the contrary, the expected annualized interest rate that can be adjusted during the loan period is the floating expected annualized interest rate. (2) Advantages and disadvantages of fixed expected annualized interest rate. Fixed expected annualized interest rate is simple and convenient in accounting, which is convenient for both investors and financiers to plan funds. But for long-term borrowers and borrowers, the risk is greater. In financing, there is a risk that the expected annualized interest rate will fall, because if the expected annualized interest rate falls after the loan relationship is determined, it means that the financing cost is too high for the financier who adopts the fixed expected annualized interest rate. In terms of investment, there is a risk that the expected annualized interest rate will rise, because after the loan relationship is determined, if the expected annualized interest rate rises, for investors who adopt a fixed expected annualized interest rate, it means that the funds are occupied in assets with lower expected annualized expected returns. (3) Advantages and disadvantages of floating expected annualized interest rate. Floating expected annualized interest rate provides investors and financiers with the possibility to manage the expected annualized interest rate risk, which is more detailed but more complicated in accounting, and also eliminates the expected annualized interest rate risk. Since 1970s, the fluctuation range and frequency of the expected annualized interest rate in the world have greatly increased, and the floating expected annualized interest rate has been adopted more and more, especially in the lending activities of enterprises. The expected annualized interest rate of corporate loans in China is now the floating expected annualized interest rate method, and the expected annualized interest rate is verified once a year.