The basis point usually refers to the adjustment points of the best lending rate. A basis point is actually equivalent to 0.0 1 percentage point, which is 0.0 1%. So 100 basis points is 1%.

When users apply for loans from banks, the addition and subtraction basis points provided by different banks may be inconsistent. According to the comparison, you can choose the best basis point, that is, the bank with fewer basis points. Because of this, the interest rate borne by users will be relatively low.

The base point is a unit of measurement used to express the change of interest rates of bonds and bills in the financial field. In the concept of finance, the definition of basis point refers to the difference between the spot price and futures price of the same commodity, and the value obtained by subtracting the futures price from the spot price is the basis point.

Generally speaking, the basis points are negative, because the spot price of many commodities may be lower than the futures price, so the value obtained is negative. Basis points are divided into four categories: enhanced basis points, weakened basis points, national basis points and premium basis points. The function of the base point lies in a benchmark index. The financial field also often uses the basis point to reflect the interest rate changes of financial instruments.

The role of the base point:

The loan basis point plays an important role in the loan interest rate. Banks use loan basis points to calculate loan interest rates, and usually add or subtract loan basis points from the benchmark interest rate. For example, the benchmark interest rate is 4.5% and the bank loan basis point is 50 basis points, so the loan interest rate is 5%.

The size of the loan base point is influenced by many factors, the most important of which is the central bank interest rate. The central bank's interest rate refers to the interest rate policy of the central bank to commercial banks, which directly affects the bank's loan interest rate. As the central bank's interest rate rises, the bank's loan interest rate will also rise; If the central bank's interest rate falls, the bank's loan interest rate will also fall.

In addition, there are some other factors that will also affect the size of the loan base point, such as the bank's capital cost, market competition, the borrower's credit rating and so on.