SDB Club Benchmark Real Estate

Select the current time upward adjustment of the RMB benchmark interest rates for what is considered?
In the Party Central Committee and State Council, under the correct leadership of the current round of macro-control the integrated use of economic instruments, legal means and necessary administrative means, and achieved good results, macroeconomic and financial operations to continue to control the desired direction. Recent economic and financial operations there are still some contradictions and problems, in order to control the outcome of the consolidation of the previous stage, the People’s Bank reported by the State Council agreed that the decision to raise benchmark interest rate of RMB.

Upward adjustment of the RMB benchmark interest rate is conducive to further economic means to play in resource allocation and macro-control role; helps prevent excessive corporate funds to ease the tight liquidity situation of some enterprises, reducing CPB funding; is conducive to optimizing the economic structure, improving economic efficiency, and maintain a sustained, rapid, coordinated, and healthy development momentum.

Why in the interest rates at the same time, it is necessary to relax the financial institutions lending rate floating range?
The Third Plenary Session of the party’s 14 put forward a market-oriented interest rate reform, the basic idea of the party’s National Congress and the Third Plenary Session of the 10 series of important decisions for the market-oriented interest rate reform and further specified in the right direction. From 1998 to 1999, the People’s Bank of three financial institutions to expand the floating scope of lending rates. January 1, 2004, approved by the State Council, the People’s Bank of financial institutions to further expand the floating scope of lending rates. Financial institutions are no longer in accordance with the nature of firm size and ownership, but according to the credibility of enterprises, risk factors such as determining reasonable lending rates, and gradually formed a risk of loans in accordance with the pattern of the cost differential pricing.

Loans from financial institutions as interest rates tend to improve the management system, continuously improve the pricing power, financial institutions gradually establish a risk management system is no longer a ceiling on the lending rate to financial institutions can better determine the risk of loans in accordance with the level of interest rates, further support the development of SMEs, to relieve the employment pressure. However, taking into account urban and rural credit cooperatives financial competitive environment is still not perfect, in a period of time, the People’s Bank to its lending rate cap still in place management, floating coefficient of the highest benchmark lending rate 2.3 times.

All financial institutions should strictly enforce the adjusted benchmark interest rate and floating scope, strengthening the interest rate risk management, in accordance with its own operating conditions, the cost of capital and business risks and other factors to determine a reasonable deposit and loan interest rates to prevent the blind to raise lending rates to curb usury act, the maintenance of economic and financial stability of operation.

upward adjustment of the RMB benchmark interest rates have any effect on the residents?
The interest rate adjustments will help increase people’s interest. Moreover, medium and long-term deposit interest rate increases greater than short-term, will help protect the residents of long-term savings deposit interest income.

The interest rate adjustments, personal housing accumulation fund loans and commercial banks to self-interest of individual housing loans raised benchmark lending rate less than AM. This can help make the real estate supply and demand are balanced and healthy development, but also appropriate to take care of loans of the vital interests of buyers.

Why do you allow financial institutions to deposit interest rate to float downward?
allow financial institutions to float downward the interest rate on deposits is to further promote the market-oriented interest rate reform, an important step for improving the regulatory mechanism of China’s central bank, financial institutions and capital market reform and development of great significance. First

conducive to improving the monetary policy transmission mechanism of micro. Financial institutions, the central bank benchmark interest rates by reference to acquire a certain amount of deposit interest rate floating right to the smooth conduction of monetary policy is one of the conditions.

Second, it helps financial institutions in accordance with the capital adequacy ratio requirements for liabilities and self-pricing initiatives to improve the competitiveness of financial institutions to guard against financial risks. Allow financial institutions to deposit interest rate to float downward, it can take the initiative to conduct liability management, on the other hand, could serve to restrain the excessive expansion of its assets, and enhance ability to resist risks, the implementation of the China Banking Regulatory Commission of financial institutions capital adequacy ratio requirements.

Thirdly, it is conducive to the development of capital markets to raise the proportion of direct financing. The steady development of direct financing is related to China’s future structure of the rational distribution of financial assets and financial long-term stable development of important strategic choice. Allow financial institutions to deposit interest rate to float downward to increase sources of funding for capital markets to encourage financial investment channels for the diversified development. Xinhua News Agency topic feeds.