China's central bank introduces new prime lending rate for loans
2013-10-25 10:48:16
The People's Bank of China on Friday said it has launched a new benchmark lending rate, called the loan prime rate, as part of efforts to liberalize the country's interest rate regime.
The new prime rate would be the benchmark for commercial banks to set interest rate while extending loans to their best customers.
The loan prime rate is a weighted average of lending rates from China's nine commercial banks, the PBoC said. The rate will be set on each business day and would be announced through the Shanghai Interbank Offered Rate or Shibor.
On Friday, the level of the one-year prime rate was 5.71 percent.