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Reasons why the loan interest rate of small and medium-sized enterprises has risen instead of falling
The annualized interest rate of the benchmark loan of the central bank is expected to fall. It stands to reason that the expected annualized interest rate of SME loans should also fall, but the data shows that the expected annualized interest rate of SME loans will rise by 2 percentage points instead of falling. What's going on here? What is the reason?

The willingness of financial institutions to lend them money is extremely low.

The correlation between SME loans and benchmark expected annualized interest rate is not high.

One pointed out, "It does not mean that when the benchmark expected annualized interest rate falls, the expected annualized interest rate of loans will fall. It may be the bank's profit target, but if the capital cost and risk cost cannot be reduced, the total pricing will be difficult to break through. "

It is pointed out that the new policy has little influence on big banks, and the lending strategy will not change significantly in the short term. In the long run, after the expected annualized interest rate of loans drops to form marketization, the competitive pattern is formed, and the expected annualized interest rate level will become a downward trend. From this perspective, it is unlikely that the financing cost of SMEs will drop significantly in the short term. Considering risk control, it is mainly large state-owned enterprises that can get low-interest loans, and the financing cost of small and medium-sized enterprises is still difficult to fall.

Generally speaking, due to the economic slowdown and the increase of bad debts, the state-led banking sector is more critical in lending, and it is difficult for the central bank to reduce the expected annualized interest rate of loans to break the financing imbalance of enterprises. The financing cost of "high-quality enterprises" in the eyes of banks has indeed decreased, but the financing space cost of enterprises with "poor qualifications" or in difficult times is narrow, and financing is still very difficult. Only those banks willing to take risks dare to lend money to the most vulnerable companies-small and medium-sized enterprises.