31-10-2013, 03:44 PM
The first quote is 5.71%, slightly lower than benchmark rate of PBOC, which is 6% now...
China steps up market reforms with new prime lending rate
(Reuters) - China launched a new benchmark lending rate on Friday in another step towards letting markets set the cost of funds and reducing distortions that have led to excessive investment and overcapacity now dogging the world's second-largest economy.
The "loan prime rate," will guide commercial bankers in setting interest rates when lending to their best customers, the country's central bank said.
China has been gradually moving away from rate controls in favour of a market-driven system and in July abolished all controls on bank lending rates.
...
The new rate, which only has a one-year tenor, was set by nine commercial banks including China's four biggest banks and was quoted for the first time on Friday at 5.71 percent.
...
http://uk.reuters.com/article/2013/10/25...9B20131025
China steps up market reforms with new prime lending rate
(Reuters) - China launched a new benchmark lending rate on Friday in another step towards letting markets set the cost of funds and reducing distortions that have led to excessive investment and overcapacity now dogging the world's second-largest economy.
The "loan prime rate," will guide commercial bankers in setting interest rates when lending to their best customers, the country's central bank said.
China has been gradually moving away from rate controls in favour of a market-driven system and in July abolished all controls on bank lending rates.
...
The new rate, which only has a one-year tenor, was set by nine commercial banks including China's four biggest banks and was quoted for the first time on Friday at 5.71 percent.
...
http://uk.reuters.com/article/2013/10/25...9B20131025