Judging from the contents of the announcement, the scope of batch conversion includes floating-rate personal housing loans (including personal commercial housing loans, excluding provident fund personal housing loans and provident fund discount loans) that have been issued before 2020 1 and have been signed but have not been issued with reference to the benchmark loan interest rate. Industrial and Commercial Bank of China (60 1398) also made it clear that the current overdue loans are not within the scope of this conversion.
The six major state-owned banks have different opinions on the batch conversion rules, but all of them include: converting the interest rate pricing method agreed in the original contract into the pricing benchmark of the corresponding term LPR, and the interest rate level implemented from the time of conversion to the first re-pricing date thereafter (excluding) is equal to the latest interest rate level of the original contract. Calculate the bonus value with the LPR of the same period released in February, 20 19, which can be negative and fixed during the remaining term of the contract. On each repricing date, the interest rate level is recalculated and determined by the corresponding term LPR of the latest month and the above added value.
Regarding the adjustment of repricing cycle and repricing date, banks are slightly different. For example, ICBC said that the repricing date was adjusted to the corresponding date of the loan issuance date. If the conversion date of the pricing benchmark is the same as the adjusted repricing date, the repricing will not be carried out on the conversion date, and the loan will be repriced from the next repricing date. Bank of China (60 1988, stock bar) said that the repricing period was changed to 12 months, and the repricing date remained unchanged from the original contract.
On February 20 19, the central bank announced that from March 2020 to June 2020, 1, financial institutions should negotiate with customers of existing floating-rate loans on the conversion terms of the pricing benchmark and convert the interest rate pricing method agreed in the original contract into LPR as the pricing benchmark. In principle, the conversion should be completed before August 2020. At that time, the relevant person in charge of the central bank said that the stock floating rate loans were still priced on the basis of the benchmark loan interest rate, which could not reflect the changes in market interest rates in time, which was not conducive to protecting the rights and interests of both borrowers and borrowers.
Under the regulatory requirements, commercial banks actively implement it. However, the transition has been slow. The China Monetary Policy Implementation Report for the Second Quarter of 2020 recently released by the central bank pointed out that by the end of June, the conversion progress of stock loan pricing benchmark had reached 55%. Among them, the conversion progress of existing enterprise loans is 76%. According to the requirements of the central bank, in principle, the interest rate conversion of stock loans should be completed before August 3 1, and now there are only less than 20 days left.
In addition, today's reporter in beijing business today noticed that many banks informed their customers through announcements, WeChat and SMS, and many banks also opened online conversion channels, but the number of customers who actively "converted" to banks is still a minority. Zhou, an analyst in the financial market department of China Everbright Bank (60 18 18, stock bar), said that the reason why many banks adopt batch conversion is mainly because the number of mortgage customers is large and scattered, and the batch conversion method saves resources and improves processing efficiency; But in order to avoid unnecessary disputes, it is still necessary to ensure that customers understand through various channels.
Wen Bin, chief researcher of China Minsheng Bank (6000 16, Stock Bar), pointed out that both fixed interest rates and LPR have interest rate risks. If the loan term is short and the previous mortgage interest rate is high, you can choose LPR, so the monthly mortgage interest rate will be reduced, and even if LPR rises in the future, you can repay in advance. For people with long term and low loan interest rate, they can choose a fixed mortgage interest rate, which can lock in the monthly payment cost and better arrange personal household income and expenditure.