New landmark for interbank lending market

The introduction of the Measures on the Administration of Interbank Lending marks a new page in the development of China’s interbank lending market. With the issuance of the Measures, the interbank market has witnessed diversified participants, enhanced capacity of funding and enlarged size. Also, interest rates of the interbank lending have become increasingly effective as signals of money market interest rates; Shibor has strengthened its role as the benchmark in the interest rate market; and the market is much more transparent, healthy and orderly.