Chinese authority requires lenders to use the loan prime rate (LPR), the new reference rate for banks' lending, as a new benchmark for pricing existing floating-rate loans, in another move to help lower borrowing costs to support the real economy.
Financial institutions are prohibited from signing floating-rate loan contracts based on the previous benchmark bank lending rate, starting January 1, said the People’s Bank of China (PBOC) on Saturday.
They should gradually . . .
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