The central bank authorized the National Interbank Funding Center to announce that the loan market quoted interest rate (LPR) on December 20, 2021 is: 1-year LPR is 3.8%, and 5-year and above LPR is 4.65%. LPR quoting banks currently include 18 banks. Before 9:00 on the 20th of each month (postponed if it is a holiday), each quoting bank submits a quote to the National Interbank Funding Center in steps of 0.05 percentage points. The National Interbank Funding Center will The LPR is calculated by taking the arithmetic average after removing the highest and lowest quotes, and rounding to the nearest integer multiple of 0.05%. It will be announced at 9:30 that day, and the public can check it on the National Interbank Funding Center and the central bank website.
Loan Prime Rate:
1. Loan Prime Rate (LPR) is determined by a representative quoting bank based on the bank’s loan interest rate for the best customers. Quoted in the form of points added to the open market operation interest rate (mainly referring to the medium-term lending facility rate), the basic loan reference interest rate is calculated and published by the National Interbank Funding Center authorized by the central bank. Each financial institution should mainly refer to the LPR for loan pricing. LPR includes two varieties with a maturity of 1 year and a maturity of more than 5 years. LPR has a high degree of marketization and can fully reflect the supply and demand of funds in the credit market. Using LPR for loan pricing can promote the formation of market-oriented loan interest rates and improve the transmission efficiency of market interest rates to credit interest rates. On December 20, 2021, the People's Bank of China authorized the National Interbank Lending Center to announce that the loan market quoted interest rate (LPR) on December 20, 2021 is: 1-year LPR is 3.8%, and 5-year and above LPR is 4.65% . The above LPR is valid until the next LPR is issued.
2. The loan market quoted interest rate (LPR) is submitted by each quoting bank to the National Interbank Funding Center on the 20th of each month (postponed if it is a holiday) in steps of 0.05 percentage points. The Interbank Funding Center calculates the LPR based on the arithmetic average after removing the highest and lowest quotes, and rounds to the nearest integer multiple of 0.05%. It is announced at 9:30 that day. The public can find it at the National Interbank Funding Center and the People's Bank of China. Website inquiry. LPR includes two varieties with a maturity of 1 year and a maturity of more than 5 years.
3. LPR quoting banks should comply with the requirements of the macro-prudential policy framework, have established internal yield curves and internal transfer pricing mechanisms, have strong independent pricing capabilities, and have formulated management measures for the bank’s loan market quoted interest rates. , and other conditions conducive to carrying out quotation work. The market interest rate pricing self-discipline mechanism assesses the quotation quality of quoting banks, regularly adjusts the members of quoting banks, supervises and manages the operation of loan market quoted interest rates, and regulates the behavior of quoting banks and designated issuers.