Description
China's 5-year Loan Prime Rate (LPR 5Y) is one of China's benchmark interest rates, published by the People’s Bank of China (PBoC). It serves as a reference for long-term loan interest rates nationwide.
The LPR 5Y is determined by the quotations from 18 designated banks, based on the Medium-term Lending Facility (MLF) rates, plus additional points that consider the banks' funding costs and risk premiums, thereby improving the transmission of market interest rates to lending rates.
This rate is published on the 20th of each month, reflecting the average rate offered by banks to their most creditworthy customers for long-term loans.