PBoC reforms rates mechanism in bid to cut funding costs

The People’s Bank of China

China’s central bank has unveiled a key interest rate reform in an attempt to improve monetary policy transmission and push down funding costs for smaller companies, after new lending fell sharply in July.

The People’s Bank of China will revamp the loan prime rate (LPR) and urge commercial banks to use LPR pricing by incorporating the new rate into its macro-prudential assessments.

The benchmark rate, LPR, will be linked to the rate on the PBoC’s open market operations, such as the medium-term

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account