In China, the benchmark interest rate is set by the People's Bank of China as the basis for commercial banks and other financial institutions to set loan interest rates. The benchmark interest rate includes one-year fixed deposit rate, one-year to three-year fixed deposit rate, three-year to five-year fixed deposit rate and five-year fixed deposit rate.
Since 20 19, the People's Bank of China has introduced a new loan interest rate system, namely the loan market quotation (lpr), which has replaced the original benchmark interest rate. Lpr is the loan interest rate executed by commercial banks for their best customers (usually large companies with the best reputation), and other loan interest rates can be generated by adding or subtracting points (percentages) on this basis.