1. What is the quoted interest rate in the loan market (LPR)?
LPR is quoted by 18 representative quotation banks according to the bank's loan interest rate to the best quality customers, plus the open market operating interest rate (mainly referring to the medium-term lending convenience rate), which is calculated by the National Interbank Funding Center authorized by the People's Bank of China, providing pricing reference for bank loans. LPR includes 1 year and more than 5 years. Since August 20 19, the People's Bank of China has authorized the National Interbank Funding Center to publish LPR (postponed in case of holidays) on the 20th of each month, and the public can make inquiries through the National Interbank Funding Center and the website of the People's Bank of China.
2. What is the pricing benchmark?
Floating rate loans generally need to refer to a pricing benchmark and adjust their execution interest rate regularly. Previously, the interest rate of floating rate loans was usually expressed as "benchmark interest rate × multiple" (for example, the multiple of 30% was 0.7, and the multiple of 1. 1 was 1), where the benchmark interest rate was the pricing benchmark. After converting to reference LPR pricing, the expression of interest rate will become "LPR spread", where LPR is the pricing benchmark.
3. Why should the pricing benchmark of floating rate loans be converted into LPR?
A: At present, LPR has been used as the pricing benchmark for most new loans, but the pricing benchmark for existing floating rate loans is still mainly the loan benchmark interest rate. Since June 20 15 and 10, the benchmark interest rate of the loan has remained unchanged. Compared with the benchmark loan interest rate, LPR has a higher degree of marketization, which can reflect the changes of market interest rate in time, and has dropped several times since August 2065438+2009. In order to protect the rights and interests of both borrowers and borrowers, especially to enable borrowers to enjoy the benefits brought about by the downward interest rate, the People's Bank of China has clearly started to promote the conversion of the pricing benchmark of existing floating rate loans from 1 in March 2020.
4. What loans need to change the pricing benchmark?
Loans that need to change the pricing benchmark must meet several conditions at the same time:
First, it has been issued before 2020 1, or it has been signed but not issued;
Second, the reference loan benchmark interest rate pricing;
The third is floating interest rates. Fixed rate loans, floating rate loans with reference to the loan market quotation (LPR), etc. No conversion is required. In the last repricing cycle, the floating-rate loan of inventory shall not be converted. Provident fund personal housing loans do not need to be converted, but commercial personal housing loans in portfolio loans should also be converted into pricing benchmarks.
5. What are the repricing dates and repricing cycles? How to determine whether the loan is in the last repricing cycle?
When your loan is a floating interest rate loan, the actual execution interest rate of the loan will be adjusted regularly according to the time agreed in the contract. The repricing date is the interest rate adjustment date agreed between you and the bank. The repricing date of personal mortgage is generally 1+0 per year, or the date corresponding to the annual loan issuance date (referred to as "corresponding date"). The repricing cycle refers to the length of time from this repricing date to the next repricing date. If the personal mortgage interest rate changes every year, then the repricing cycle is one year. If the floating rate loan has passed the last repricing date, the loan is already in the last repricing cycle. Before March 2020, and from March to August 2020, loans entering the last repricing cycle cannot change the pricing benchmark. However, if both parties reach an agreement, they can also switch.
The above are the answers to five questions about the pricing benchmark conversion business, which is also the basis of fund business processing. For the candidates of 202 1, it is also necessary to master. After all, it is very helpful for future practice. At this stage, candidates who meet the requirements of fund business registration need to take the time to review and prepare for the exam. I wish you all good grades!