. The interest rate on Chinese bank loans is likely to fluctuate.\u00a0With Chinese banks starting to price loans based on interbank interest rates, there is a possibility of further fluctuations in the interest rate of loans. <\/p>\n<\/p>\n
According to S&TAG_OPEN_p_12 P Global Ratings, banks will need to strengthen their internal systems for managing interest rate risk. <\/p>\n<\/p>\n
According to S&P, banks with strong asset-liability management capabilities will be able to effectively adapt to changes in loan pricing.TAG_OPEN_p_11 Such banks are likely to strengthen their position competitively. <\/p>\n<\/p>\n
However, for banks with weak risk management capabilities, adjusting to the new interest rate system can be challenging, according to the rating agency.TAG_OPEN_p_10 <\/p>\n<\/p>\n
S&P has concluded that loans based on the repo rate, in particular, can cause more volatility in the interest rate of bank loans.TAG_OPEN_p_9 As a result, commercial banks need to reform their internal credit pricing system and make interest rate risk management more effective. <\/p>\n<\/p>\n
However, pricing loans based on interbank interest rates will give banks more flexibility to develop new loan products and set interest rates, S&P said.TAG_OPEN_p_8 <\/p>\n<\/p>\n
The change in debt pricing is part of an effort by Chinese policymakers to channel the effects of monetary policy through the banking system more effectively and efficiently. <\/p>\n
S&P Global Ratings is the world’s leading independent credit rating provider.<\/p>\n","protected":false},"excerpt":{"rendered":"
. The interest rate on Chinese bank loans is likely to fluctuate.\u00a0With Chinese banks starting to price loans based on interbank interest rates, there is a possibility of further fluctuations in the interest rate of loans. According to S&TAG_OPEN_p_12 P Global Ratings, banks will need to strengthen their internal systems for managing interest rate risk. […]<\/p>\n","protected":false},"author":1,"featured_media":35579,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[102,123,126,129,147],"tags":[],"class_list":["post-35581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-en","category-banking-update-en","category-banking-news-en","category-special-en","category-news-en"],"acf":[],"jetpack_featured_media_url":"https:\/\/bankingsansar.com\/wp-content\/uploads\/2026\/08\/china-bank.jpg","publishedDateNp":"\u0968\u096a \u0936\u094d\u0930\u093e\u0935\u0923 \u0968\u0966\u096e\u0969, \u0906\u0908\u0924\u0935\u093e\u0930 \u0967\u0968:\u096b\u0966","_links":{"self":[{"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/posts\/35581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/comments?post=35581"}],"version-history":[{"count":1,"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/posts\/35581\/revisions"}],"predecessor-version":[{"id":35582,"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/posts\/35581\/revisions\/35582"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/media\/35579"}],"wp:attachment":[{"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/media?parent=35581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/categories?post=35581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bankingsansar.com\/bs_api\/wp\/v2\/tags?post=35581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}