Chinese Commercial Banks Shift Corporate Loan Pricing to Short-Term Repo Rate from LPR, Sparking Investor Scrutiny Over Record-Low 1.4% Q1 Net Interest Margin
Chinese commercial banks have begun pricing corporate loans against a short-term interbank repo rate instead of the benchmark loan prime rate (LPR). This shift is drawing sharp scrutiny from investors concerned about the sector’s already thin profitability, as the industry’s average net interest margin slid to a record low of nearly 1.4% in the first quarter, according to official data.
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