Shanghai Interbank Offered Rate holds steady on Monday at 1.719 percent
Date
5/20/2024 8:57:59 AM
(MENAFN) On Monday, the overnight Shanghai Interbank Offered Rate (Shibor), a key indicator of China's interbank market borrowing costs, maintained stability, remaining unchanged at 1.719 percent. However, variations were observed in other tenors, with the seven-day rate decreasing by 0.5 basis points to 1.803 percent, the one-month rate marginally declining by 0.2 basis points to 1.905 percent, and the one-year rate showing a slight uptick of 0.3 basis points to 2.099 percent.
Shibor serves as a fundamental benchmark for assessing the cost of borrowing in China's interbank market. It is computed by arithmetically averaging the interbank Renminbi (RMB) lending rates offered by a group of 18 commercial banks with high credit ratings. Notably, this calculation method excludes the four highest and four lowest quotations, providing a representative snapshot of prevailing market lending rates.
The stability of Shibor underscores the overall equilibrium in China's interbank lending environment, reflecting factors such as liquidity conditions, monetary policy dynamics, and market sentiment. Despite minor fluctuations in certain tenors, the general trend suggests a balanced borrowing landscape, facilitating smooth financial intermediation and liquidity management within the banking system. As a crucial reference point for financial institutions and market participants, Shibor plays a pivotal role in informing lending and investment decisions, thus influencing broader economic activities.
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