China's move to change the way banks price loans could help ease funding co...
BEIJING - China’s move to change the way banks price loans could help ease funding costs, especially for struggling small firms, although lenders are expected to try to limit the hit to their earnings by not fully passing the cut along.
On Saturday, the People’s Bank of China said it will use the loan prime rate for pricing existing floating-rate loans starting March 1, extending a reform unveiled in August when the LPR was first applied to new loans. “But since banks have more say in loan pricing, there’ll be resistance,” said Wang, who estimated overall loan pricing would fall about 10 basis points in 2020.
Outstanding local-currency loans were at 151.97 trillion yuan at end-November. The PBOC has not given details of floating and fixed loans, but analysts estimate about 40% of loans would be hit by the switch in the coming months.While easing Sino-U.S. trade tensions could relieve pressure on exports, analysts say more policy loosening is needed to cope with weak demand at home and abroad to shore up China’s economic growth that has slowed to the weakest in nearly thirty years.
Analysts expect the central bank to cut the MLF by 20-30 bps in 2020, paving the way for a lower LPR.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Hong Kong protesters demand mainland China traders leavePolice arrest about a dozen protesters and use pepper spray to break up a protest in Sheung Shui shopping mall aimed at disrupting retail businesses near border with mainland China.
Consulte Mais informação »
Why Human Rights In China Is Critical To U.S. BusinessWhile China has fueled economic growth by embracing a market system, its government has not shown a similar willingness to reform its political system especially in the Xinjiang province in Western China. American businesses need to find ways to navigate this complicated terrain.
Consulte Mais informação »
China commerce ministry says it has proactively dealt with U.S. trade frictionsChina's Commerce Ministry has 'proactively dealt with' trade fric...
Consulte Mais informação »
Taiwan president: Island's democracy under threat from ChinaTaiwanese President Tsai Ing-wen says the self-governing island's democracy remains under direct threat from rival China, underscoring her calls for closer ties with the U.S. and other allies.
Consulte Mais informação »
City dwellers find simpler life in rural China communeYang Zhaoyu quit his job in a big Chinese city nine months ago and moved to a sm...
Consulte Mais informação »
How China Is Winning The War Against MeaslesUnlike many other countries around the world, China is experiencing a significant decrease in measles cases. Here's why:
Consulte Mais informação »