What will be the bank dollar interest rate in 2022?

The interest rates for bank U.S. dollar deposits in 2022 are as follows:

1. Base interest rate: after 5 years, the annual interest rate will be 1.5%, the annual interest rate will be 2.1%, the annual interest rate will be 2.75%, and the annual interest rate will be -% ;

2. Bank of China: Annual interest rate is 1.75% for 1 year, 2.25% for 2 years, 2.75% for 3 years, 2.75% for 5 years;

3. China Construction Bank: Annual interest rate is 1 1.75% per year, 2.25% for 2 years, 2.75% for 3 years, 2.75% for 5 years;

4. ICBC: annual interest rate is 1.75% for 1 year, 2.25% for 2 years, 2.75% for 3 years, 2.75 for 5 years %;

5. Agricultural Bank of China: annual interest rate is 1.75% for 1 year, 2.25% for 2 years, 2.75% for 3 years, 2.75% for 5 years;

6. Postal Savings Bank: annual interest rate The interest rate is 1.78% for 1 year, 2.25% for 2 years, 2.75% for 3 years, and 2.75% for 5 years;

7. Bank of Communications: The annual interest rate is 1.75% for 1 year, 2.25% for 2 years, and 2.75% for 3 years. 2.75% for 5 years;

8. China Merchants Bank: annual interest rate is 1.75% for 1 year, 2.25% for 2 years, 2.75% for 3 years, 2.75% for 5 years;

9. Bank of Shanghai : The annual interest rate is 1.95% for 1 year, 2.4% for 2 years, 2.75% for 3 years, and 2.75% for 5 years;

10. Everbright Bank: The annual interest rate is 1.95% for 1 year, 2.41% for 2 years, and 2.75 for 3 years. %, 3% in 5 years;

11. Shanghai Pudong Development Bank: annual interest rate is 1.95% in 1 year, 2.4% in 2 years, 2.8% in 3 years, 2.8% in 5 years;

12. Ping An Bank: The annual interest rate is 1.95% for 1 year, 2.5% for 2 years, 2.8% for 3 years, and 2.8% for 5 years;

13. Bank of Ningbo: The annual interest rate is 2% for 1 year, 2.4% for 2 years, and 2.8% for 3 years. 2.8% per year, 3.25% for 5 years;

14. China CITIC Bank: annual interest rate is 1.95% for 1 year, 2.3% for 2 years, 2.75% for 3 years, and 2.75% for 5 years;

15. Minsheng Bank: The annual interest rate is 1.95% for 1 year, 2.35% for 2 years, 2.8% for 3 years, and 2.8% for 5 years;

16. China Guangfa Bank: The annual interest rate is 1.95% for 1 year, 2.4% for 2 years , 3.1% in 3 years, 3.2% in 5 years;

17. Hua Xia Bank: annual interest rate is 1.95% in 1 year, 2.4% in 2 years, 3.1% in 3 years, 3.2% in 5 years;

19. Bank of Beijing: annual interest rates for 1-year and 5-year terms They are 1.95%, 2.5%, 3.15%, and 3.15% respectively.

Reasons for the increase in foreign exchange borrowing costs

In order to gain a deeper understanding of the overseas financing costs of domestic enterprises, the General Office of the People's Bank of China recently organized 11 branches of the People's Bank of China, including the Shanghai headquarters, Guangzhou, and Nanjing, as well as Five commercial banks, including Industrial Bank, Agricultural Bank of China, China Construction Bank and Minsheng Bank, conducted a special survey.

The research team of the General Office of the People's Bank of China stated that from the overall survey situation, since the second half of 2018, affected by the shift in monetary policy of the world's major central banks and the tightening of offshore RMB liquidity, financing from overseas has Costs continue to rise, domestic and foreign interest rate differentials continue to narrow, and the advantages of overseas financing have significantly declined.

Comparison of domestic and overseas financing costs should be comprehensive

The above survey believes that a comprehensive comparison of the financing costs of different financing methods and different currencies should be made.

In addition to interest, the overseas financing costs of enterprises also include: 1. Currency conversion costs. When an enterprise uses funds raised overseas for domestic use, it will cost a certain amount of money to convert them into RMB. 2. Foreign exchange lock cost. Due to exchange rate changes, there will be a difference between the actual overseas financing amount denominated in RMB and the planned financing amount. In order to eliminate uncertainty, the enterprise needs to pay a certain fee to lock in the exchange rate risk. 3. Tax costs. Corporate overseas financing needs to bear higher taxes and accounting, consulting, roadshows, underwriting and other expenses. At the same time, when overseas funds flow back into the country, financial institutions need to pay value-added tax, income tax, etc., and these costs are usually passed on to financing companies. 4. Time cost.

In addition to normal market procedures, overseas financing also needs to be filed or approved by relevant overseas and domestic administrative departments. The procedures are cumbersome and time-consuming.

To this end, this survey conducted a comparative analysis of domestic and overseas financing costs of enterprises from the perspective of comprehensive costs.

The comprehensive cost of overseas US dollar loans continues to rise

In recent years, the comprehensive cost of overseas US dollar loans has continued to rise. A survey of 20 banks by the Hangzhou Central Branch of the People's Bank of China showed that since 2016, the comprehensive cost range of overseas U.S. dollar loans has increased by about 0.5 percentage points year by year, and is currently about 4.35% to 4.5%. A sample survey of 155 loans by the Shenzhen Central Branch of the People's Bank of China showed that the average interest rate of overseas U.S. dollar loans since 2018 has been 3.8%, an increase of 91 basis points from 2.89% in 2017. Banks report that the current one-year overseas US dollar financing interest rate (tax included) is basically above 2.9%. If the cost of foreign exchange lock-in and domestic guarantee fees are also taken into account, the comprehensive cost is above 4.35%. There is almost no difference in the comprehensive cost of domestic and overseas financing. , the wait-and-see sentiment of enterprises in overseas financing has increased significantly.

The current comprehensive cost of overseas U.S. dollar loans continues to rise, mainly due to factors such as the Federal Reserve's continued interest rate hikes and the European Central Bank's expected tightening of monetary policy, which have driven up the cost of U.S. dollars in global financial markets. In November 2018, the 1-year LIBOR (London Interbank Offered Rate) was 3.1%, an increase of 31 basis points from the end of June; at the end of November, the 10-year U.S. Treasury bond yield closed at 2.99%, an increase of 13 basis points from the end of June.

In addition, the high cost of locking in foreign exchange when companies use funds is also an important reason for the rise in overseas financing costs. According to research by the Guangzhou Branch of the People's Bank of China, the current foreign exchange lock-up costs for one-year and three-year overseas U.S. dollar loans are 1.42% and 1.95% respectively; Euro and Japanese yen loans are even higher. The central branches of the People's Bank of China in Hangzhou, Ningbo, and Qingdao reported that many companies did not carry out exchange lock operations because they were unwilling to bear the high cost of foreign exchange locks, which resulted in serious losses. For example, a company in Ningbo failed to hedge the foreign exchange exposure of US$400 million of funds that were repatriated for domestic use. In addition, the price of RMB against the US dollar was high at the time of the previous issuance of US dollar bonds, resulting in a huge loss of approximately RMB201 million.

The cost of overseas US dollar bond issuance has increased, with real estate companies and local financing platforms being the main force.

In recent years, the Federal Reserve has continued to raise interest rates and the US dollar index has continued to rise. Chinese-funded enterprises have issued US dollars overseas. Bond costs have increased. In the third quarter of 2018, the average coupon rate of overseas bonds issued by Chinese-funded institutions was 6.24%, an increase of 1.35 percentage points from the fourth quarter of 2017.

The survey found that the overseas issuance of US dollar bonds by Chinese-funded enterprises is mainly real estate companies and local government financing platforms. In recent years, affected by the tightening of domestic real estate regulation and local debt management policies, domestic financing of real estate companies and local government financing platforms has been hindered, and there are many demands for overseas financing. This type of financing was relatively intensive in the second half of 2017 and the first half of 2018. For example, from January 2017 to October 2018, the number of overseas bonds issued by enterprises in Zhejiang Province was 13, with a total amount of US$3.32 billion. Among them, government financing platforms and The scale of bond issuance by real estate companies accounted for 74.1%.

Compared with import and export trade companies, government financing platforms and real estate companies usually lack overseas repayment sources and U.S. dollar positions, need to bear certain foreign exchange lock costs, and face greater policy risks. In addition, Various intermediary service fees, the cost of overseas bond issuance is very high. However, such enterprises are often forced to choose overseas financing due to blocked domestic financing channels, excessive pressure to repay early debt, and tight capital chains. Therefore, their demand is still large and their tolerance for costs is relatively high. The cost of overseas U.S. dollar financing for some real estate companies exceeds 13%, which is higher than the cost of trust products issued domestically.

The cost of offshore RMB liabilities has increased

Research institutions have reported that since August 2018, overseas RMB liquidity has tightened, offshore RMB interest rates have fluctuated upwards, and liability costs have increased. improve. Taking the one-year Hong Kong interbank offered rate as an example, it hit a low of 3.34% during the year in mid-August 2018 and then rose by 125 basis points to reach 4.59% at the end of October.

Taking the Singapore branch of a certain bank as an example, in the first 10 months of 2018, the average monthly interest-paying liability ratio of offshore RMB was 2.98%. The single-month interest-paying liability ratio was mixed, and the overall trend of slight fluctuations was maintained; the low during the year was 8 It was 2.78% in September and has increased month by month since then, reaching 2.97% in September and 3.11% in October.

The overall situation of the survey shows that the current cost of RMB integration for enterprises from abroad is higher than that of domestic enterprises. According to a survey by the Nanjing Branch of the People's Bank of China, affected by multiple factors such as tighter offshore RMB liquidity, rising liability costs, and stronger expectations for a decline in domestic loan costs, the comprehensive cost for ordinary domestic enterprises to obtain a one-year RMB loan from an overseas branch of a Chinese-funded bank is at It ranges from 5.16% to 6.36%, which is higher than the domestic rate of 5.07% to 6.22%. Currently, high-quality customers of domestic banks are generally less likely to borrow RMB funds from abroad, and the scale of overseas RMB financing has declined significantly. Data from the RMB Cross-border Collection and Payment Information Management System (RCPMIS) show that the scale of cross-border RMB loan inflows across the country dropped from 466.9 billion yuan in the first half of 2018 to 243.1 billion yuan. A sample survey by the Shenzhen Central Branch of the People's Bank of China showed that from January to October 2018, the scale of RMB financing in the cross-border financing filing amount of Shenzhen enterprises dropped by 50% year-on-year. Data provided by a bank show that as of the end of October 2018, the cumulative amount of RMB borrowings by its domestic corporate credit customers from overseas banks (including offshore banks) was only 86 million yuan, accounting for 2.8% of all loans.

Three major outstanding problems and solutions

Based on the above survey, there are three main problems in corporate overseas financing that are more prominent.

First of all, taxes and fees on corporate cross-border financing are relatively high. Currently, when overseas funds flow back, financial institutions are required to pay withholding income tax, value-added tax and surcharges, and these costs are generally passed on to borrowing companies. In this regard, companies recommend lowering relevant tax rates to reduce borrowing and capital use costs; banks recommend setting up differentiated loan value-added tax rates, reducing banking business taxes and fees, and encouraging loans to be directed to high-quality companies and small and medium-sized enterprises.

Secondly, overseas financing procedures are cumbersome and time-consuming. It is understood that domestic companies often need a preparation period of 2 to 3 months to handle overseas financing business. In order to avoid cumbersome procedures for overseas financing and long waiting times for financing, some companies have to give up overseas financing.

Finally, banks’ credit lending capabilities are constrained. Some banks have reported that under current capital constraints, banks have limited credit lines, which is not conducive to lowering corporate financing prices. Banks suggest that while adhering to endogenous growth, they should accelerate the replenishment of external capital such as preferred stocks and secondary capital bonds; dynamically adjust country risk provisions to reduce restrictions on credit.

USD loan interest rate in 2022

According to the forecast released by the US Federal Reserve Fund in December 2020, the US dollar loan interest rate in 2022 is expected to be 0.85-1.10%. This level will remain unchanged from 2021, but will remain at 0.15%-0.2% interest rates most of the time.

Domestic U.S. dollar loan interest rates

The U.S. dollar loan interest rate is not regulated by the country. Each bank quotes based on its own circumstances.

Currently, the domestic U.S. dollar short-term loan interest rate is around 2.25%. The central bank’s interest rate policy in 2004 was to promote higher interest rates, while U.S. dollar interest rates are still trending lower. This obvious loan interest rate gap has not narrowed in the near future. There are signs that corporate demand for foreign exchange loans continues to rise.

Under the current circumstances where RMB interest rates are higher than those of the US dollar and there is appreciation pressure on the RMB exchange rate, some domestic companies and individuals, based on their own circumstances, have reduced their holdings of foreign exchange assets and RMB liabilities and increased RMB assets and foreign exchange loans.

That’s it for the introduction to the one-year U.S. dollar loan interest rate.