The loan market quotation rate (LPR) refers to the interest rate calculated and published by the National Interbank Funding Center authorized by the People's Bank of China after the quotation of 18 quotation bank, including 1 year and more than 5 years. From August 20th, 20 19, LPR will be published on the website of National Interbank Funding Center and China People's Bank at 9: 30 on the 20th of each month (postponed in case of holidays).

(Response time: June 22, 2022. The above contents are for your reference. If there are business changes, please refer to the latest business rules. )

Tips: If you have any questions, you can call the official customer service hotline or contact China Merchants Bank APP for online customer service consultation.

What does LPR mean?

LPR is the basic loan reference interest rate calculated and published by the representative quotation bank on the basis of the bank's loan interest rate for the best quality customers and the open market operating interest rate, and authorized by the National Interbank Funding Center of the People's Bank of China. In the future, LPR will become the main reference benchmark for loan interest rate pricing.

The above contents are for your reference. Please refer to the actual business regulations.

If you have any questions, please contact online customer service of Bank of China.

You are cordially invited to download and use China Bank Mobile Banking APP or China Bank Cross-border GO APP to handle related business.

What does LPR mean?

LPR usually refers to the quoted interest rate in the loan market.

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. Representative quotation banks quote in the form of open market operating rate (mainly referring to the medium-term lending convenience rate) according to the bank's loan interest rate for the best quality customers. All financial institutions should mainly refer to the loan pricing of LPR.

At present, 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.

Extended data:

Important progress has been made in the interest rate marketization reform;

First of all, the correlation between LPR and market capital supply and demand is significantly enhanced. The LPR of 1 year and over 5 years released in May 2020 was 3.85% and 4.65% respectively, which decreased by 0.4 and 0.2 percentage points respectively since the reform in August last year.

Second, the transmission efficiency of monetary policy has been significantly enhanced. In mid-May 2020, the interest rate of 35.3% new loans was 0.9 times lower than the original benchmark interest rate, which was nearly four times before the LPR reform, and the implicit lower limit of the loan interest rate had been broken.

Third, it effectively promoted the reduction of the real interest rate of loans. In April, the average interest rate of corporate loans was 4.8 1%, which was 0.5 1 percentage point lower than that of 20 19 before LPR reform.

4.LPR reform has played an important role in promoting the marketization reform of deposit interest rate. The overall interest rate in the loan market went down, and the bank loan income decreased. In order to keep matching with the return on assets, banks will appropriately reduce the cost of debt, and the motivation for high-interest deposits will be reduced. In fact, the interest rate of bank deposits has changed to some extent. Some banks have taken the initiative to lower the deposit interest rate, and the interest rates of market-priced money market funds and other deposit products have also declined.

What is LPR?

LPR is the basic loan reference interest rate calculated and published by the representative quotation bank on the basis of the bank's loan interest rate for the best quality customers and the open market operating interest rate, and authorized by the National Interbank Funding Center of the People's Bank of China. In the future, LPR will become the main reference benchmark for loan interest rate pricing. Representative quotation banks are: Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, China CITIC Bank, China Merchants Bank, Industrial Bank, Shanghai Pudong Development Bank, China Minsheng Bank, Xi 'an Bank, Taizhou Bank, Shanghai Rural Commercial Bank, Guangdong Shunde Rural Commercial Bank, Standard Chartered Bank (China), Citibank (China), Weizhong Bank and online merchant bank.

The above contents are for your reference. Please refer to the actual business regulations.

If you have any questions, please contact online customer service of Bank of China.

You are cordially invited to download and use China Bank Mobile Banking APP or China Bank Cross-border GO APP to handle related business.