China Construction Bank says 56% of new loans reference revamped Loan Prime Rate

FILE PHOTO: An employee walks past the logo of China Construction Bank at the bank's Dongguan branch office in Guangdong province, China July 5, 2019. REUTERS/Shu Zhang

BEIJING (Reuters) - China Construction Bank’s chief finance officer said on Thursday that 56% of the bank’s new loans referenced the revamped loan prime rate (LPR) and it will beat a regulatory target of 30% by the end of September.

China’s central bank is not likely to cut benchmark interest rate amid LPR reform, but will show moves on the medium-term lending facility (MLF) rate, CFO Xu Yiming told a news conference in Beijing.

The bank’s net interest margin may fall by 1-2 basis point in the second half of this year, Xu added.

Reporting by Ma Rong, Leng Cheng, Vincent Lee and Beijing Monitoring Desk; Editing by Kim Coghill