Lpr interest rate swap refers to the interest rate swap transaction between institutions or banks linked with lpr as the benchmark interest rate and their customers, with the purpose of helping customers convert fixed-rate loans into floating-rate loans based on lpr interest rate benchmark.

At present, the target interest rates of RMB interest rate swap are mainly short-term repo rate and lending rate. Lpr interest rate swap is an effective tool for small and medium-sized banks to manage interest rate risk and promote interest rate marketization.