There is still room for the downward trend of market interest rate

category:Finance
 There is still room for the downward trend of market interest rate


In terms of price, Liu Guoqiang said that since the LPR reform, the whole financial market interest rate and loan interest rate have been driven down. At present, there is still room for market interest rate to go down. Therefore, in the next stage, we should continue to use the reform method, improve the system and mechanism, and tap the downward space of market interest rate.

The peoples Bank of China announced on June 26 that it would increase the scale of re lending and rediscount by 500 billion yuan, and cut the interest rate of supporting agriculture and supporting small-scale re lending by 0.25 percentage point to 2.5%, guiding all kinds of banks to issue preferential interest rate loans for small and medium-sized micro enterprises to resume production.

It is worth noting that there are conditions for small and medium-sized banks to apply for the above-mentioned interest rate reduction refinancing, that is, before the end of June 2020, to issue a new inclusive small and micro enterprise loan of no higher than LPR plus 50 basis points to local legal person banks, and to allow them to apply for the refinancing funds at the same amount. This interest rate constraint is also considered by some analysts to significantly reduce the interest margin of small and medium-sized banks, so that small and medium-sized banks may not have a strong incentive to use new rediscount and re loan to serve small and medium-sized micro enterprises. In response, Liu Guoqiang said that the refinancing rate is 2.5%, allowing small and medium-sized banks to lend to small and medium-sized enterprises at an interest rate level no higher than 4.55%. There will be a spread of more than 200 basis points between banks, which should be positive for banks. The central bank will also urge the banks to implement it in the way of assessment. Source: responsible editor of Securities Times: Yang bin_nf4368

It is worth noting that there are conditions for small and medium-sized banks to apply for the above-mentioned interest rate reduction refinancing, that is, before the end of June 2020, to issue a new inclusive small and micro enterprise loan of no higher than LPR plus 50 basis points to local legal person banks, and to allow them to apply for the refinancing funds at the same amount.

This interest rate constraint is also considered by some analysts to significantly reduce the interest margin of small and medium-sized banks, so that small and medium-sized banks may not have a strong incentive to use new rediscount and re loan to serve small and medium-sized micro enterprises.

In response, Liu Guoqiang said that the refinancing rate is 2.5%, allowing small and medium-sized banks to lend to small and medium-sized enterprises at an interest rate level no higher than 4.55%. There will be a spread of more than 200 basis points between banks, which should be positive for banks. The central bank will also urge the banks to implement it in the way of assessment.