trending Market Intelligence /marketintelligence/en/news-insights/trending/CoL1s2slm1pHV6ielqGJIA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

China central bank again maintains reference rate for new loans

StreetTalk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk – Episode 69: Banks left with pockets full of cash and few places to go

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good


China central bank again maintains reference rate for new loans

The People's Bank of China maintained its reference point for new loans for the second consecutive month in January.

The central bank's one-year loan prime rate stands at 4.15% and the five-year rate remains at 4.80%. The PBoC last lowered the rate by 5 basis points in November 2019.

The loan prime rate acts as the reference point for interest rates on new loans granted by banks and is linked to the medium-term lending facility, which sets the cost of the loans that the PBoC offers to the country's lenders.

The central bank ordered financial institutions Dec. 28, 2019, to adopt the loan prime rate, or LPR, as the new benchmark to price existing floating-rate loans starting this year.

"We had thought that the recent decline in bank funding costs from the latest RRR cut and fall in short-term interbank rates might convince banks to lower their LPR quotations," said Julian Evans-Pritchard, senior China economist at Capital Economics, in a note, adding that the PBoC seems to have adopted a "wait-and-see approach."

"But with a slowdown in property construction only just getting underway, we are skeptical that the latest uptick in economic activity marks the start of a sustained turnaround," Evans-Pritchard added. He expects a 50-basis-point cut in the LPR, "with growth likely to come under renewed pressure."