BEIJING Oct 25 China has launched a new
benchmark lending rate, or the "loan prime rate", that guides
commercial banks in setting interest rates when lending to their
best customers, the country's central bank said on Friday.
The new rate would help China's benchmark interest rates
market move towards a system led by market forces, the central
bank said in a statement.
The loan prime rate, which currently only has a one-year
tenor, was set by nine commercial banks on Friday including
China's four biggest banks.
The rate will be announced on every working day on the
Shanghai Interbank Offered Rate (SHIBOR) website.
(Reporting by Aileen Wang and Koh Gui Qing)