Shanghai interbank interbank offered rate
The shanghai interbank offset rate (shanghai interbank offered rate), which has been in operation since 4 january 2007, is the average arithmetical interest rate set out in the computation of the renminbi deciphered rates by self-declared quotes from banks with higher credit ratings. The people's bank of china established the shibor working group to identify and adjust the members of the quoting group, supervise and manage shibor's operations, regulate the offer line and designate the issuer, in accordance with the " guidelines for the implementation of the shanghai interbank offering rate (shibor). The national interbank interbank borrowing centre authorized shibor's bid calculation and information publication。
Introduction
The shanghai interbank offset rate (shanghai interbank offered rate, short shibor) is the average arithmetical interest rate set by banks with higher credit ratings, which is a single, unsecured, wholesale interest rate, based on the calculation of the renminbi outlet. Currently, socially publicized shibor varieties include overnight, one week, two weeks, one month, three months, six months, nine months and one year。
The shibor quotes bank group is now composed of 18 commercial banks. Quoting banks are open market-level dealers or market traders in foreign exchange markets, and are relatively active in renminbi transactions in chinese currency markets and have more adequate information disclosure. The people's bank of china established the shibor working group to identify and adjust the members of the quoting group, supervise and manage shibor's operations, regulate the offer line and designate the issuer, in accordance with the " guidelines for the implementation of the shanghai interbank offering rate (shibor). The national interbank inter-leaves centre is authorized to calculate and publish shibor's quotations. At each transaction date, the highest and lowest four quotations were eliminated from each quote line, and after an average arithmetical calculation of the remaining quotations, shibor of each term variety was derived and released to the public at 11. 30。
Role. Shibor contributed to the rapid development of the currency market。
In 2007, total inter-bank market transactions amounted to $7. 13 trillion, an increase of $32. 2 trillion over the previous year, an increase of 82 per cent. Of this amount, the total value of borrowing transactions was 10. 6 trillion yuan, an increase of 395 per cent over the previous year; the total value of buy-back transactions was 44. 1 trillion yuan, an increase of 68 per cent, which is a record high. Borrowing exchanges involving quoted lines accounted for 94 per cent of the total and repurchase transactions for 80 per cent. Long- and medium-term lending and buy-back transactions totalled $194 billion, an increase of 101 per cent over the previous year, with all critical deadlines closed, bridging the gap at the long end of the money market。
Currently, shibor has developed a virtuous pattern of interaction with the development of the currency market. Shibor is widely used in market product pricing。
One is the continuous increase in shibor's guidance on the pricing of bond products. In 2007, interest-bearing bonds based on shibor were issued in the amount of $99 billion and short-term vouchers in the amount of $1376 billion, representing 18 per cent, 41 per cent and 97 per cent of total market issuances respectively。
Second, financial innovation products based on shibor are dynamic. Interest rate swaps of 28. 5 billion yuan, forward interest rate agreements of 1. 05 billion yuan, inter alia, in the form of loans, deposits and property items。
Third, a market-based pricing mechanism based on shibor was initially established for billing and repurchase operations。
Fourth is that the price of internal funds transfers from the quoted bank has been combined with shibor to varying degrees. Financial markets are forming a pricing cluster based on shibor, and price relations between interest rates are becoming more reasonable and clear。
