1. Loan Prime Rate (LPR) is a basic loan reference rate calculated and published by the National Interbank Funding Center authorized by the People's Bank of China, and quoted by representative quotation banks according to the bank's loan interest rate for the best quality customers plus the open market operating interest rate (mainly referring to the medium-term lending convenience rate). All financial institutions should mainly refer to the loan pricing of LPR. The current LPR includes 1 year and more than 5 years. LPR has a high degree of marketization, which can fully reflect the supply and demand of funds in the credit market. Using LPR for loan pricing can promote the marketization of loan interest rate and improve the transmission efficiency from market interest rate to credit interest rate.
2. On August 25th, 2020, 12, five state-owned banks, namely Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank, China Bank and Postal Savings Bank, announced at the same time, and from August 25th, individual housing loans within the range of batch conversion were uniformly adjusted to LPR (loan market quotation) pricing method according to relevant rules. The National Inter-bank Funding Center announced that the quoted interest rate (LPR) of the loan market in 2022 is: 1 year LPR 3.7%, and LPR 4.6% over five years.
3. Each quotation bank shall submit the loan market quotation (LPR) to the National Interbank Funding Center on the 20th of each month (postponed in case of holidays), with a step of 0.05 percentage points. After excluding the highest and lowest quotations, the National Interbank Funding Center will take the arithmetic average to calculate LPR, round it to the nearest integer multiple of 0.05%, and announce it at 9: 30 on the same day. The public can inquire at the National Interbank Funding Center and the website of China People's Bank. The current LPR includes 1 year and more than 5 years.