China to switch benchmark for floating-rate...>

CHINA: China to switch benchmark for floating-rate loans to lower funding costs

(RTRS)

- China's central bank will use the loan prime rate (LPR) as a new benchmark for

pricing existing floating-rate loans, in a step that analysts say could help

lower borrowing costs and underpin economic growth. Beijing has unveiled a raft

of pro-growth measures this year, including tax cuts, more infrastructure

spending, reductions in the amount of cash banks must keep on reserve and

lending rates to boost credit. Starting on Jan. 1, financial institutions will

be prohibited from signing floating-rate loan contracts based on the previous

benchmark bank lending rate, the People's Bank of China (PBOC) said in a

statement on its website on Saturday.

- Link: https://tinyurl.com/qoup8l8