What does it mean for banks to transform LPR?
Converting LPR refers to changing the pricing benchmark of loan interest rate from the original central bank loan benchmark interest rate to LPR. LPR, named Loan Primate in English and Loan Primate in Chinese, is the loan interest rate executed by commercial banks for their high-quality customers, which is calculated by 18 quotations on behalf of banks. The purpose of converting the pricing benchmark into LPR is to deepen the interest rate marketization reform and further promote the application of the quoted interest rate (LPR) in the loan market.
LPR can be found in the column of loan market quotation (LPR) on the right side of the National Interbank Funding Center official website (www.shibor.org) or the People's Bank of China official website (www.pbc.gov.cn). In addition, according to Announcement No.30 of the People's Bank of China [20 19], the borrower can convert the mortgage interest rate into LPR floating interest rate or fixed interest rate. The specific interest rate type can be selected according to the individual's actual situation.
The above is the answer that the bank wants to convert LPR. I hope it helps you.