The main purpose of the central bank's conversion of lpr is to link the mortgage interest rate with the market.

the p>LPR quotation bank shall comply with the requirements of the macro-prudential policy framework, have established an internal rate of return curve and an internal transfer pricing mechanism, have strong independent pricing ability, have formulated the management measures for the quotation interest rate in the loan market of the bank, and have other conditions conducive to quotation.

the self-discipline mechanism of market interest rate pricing assesses the quotation quality of quotation banks, adjusts the quotation bank members regularly, supervises and manages the operation of quotation interest rate in the loan market, and regulates the behaviors of quotation banks and designated publishers.

Extended information:

Policy release:

The People's Bank of China announced the establishment of a centralized quotation and release mechanism for LPR from October 25th, 213.

On August 17, 219, the People's Bank of China issued an announcement on reforming and improving the formation mechanism of loan market quotation interest rate, and reformed LPR in six aspects: quotation principle, formation method, term variety, quotation bank, quotation frequency and application requirements. At the same time, the Chinese name of loan prime rate was changed to loan market quotation interest rate, and the English name of LPR remained unchanged.

On August 25th, 219, the People's Bank of China issued an announcement, requiring that the interest rate of newly issued commercial personal housing loans be formed by adding the quoted loan market interest rate of the latest month as the pricing benchmark from October 8th, 219. The added value shall meet the requirements of national and local housing credit policies, reflect the loan risk status, and be fixed within the contract period. ?

Baidu encyclopedia -LPR?