Now commercial banks can afford not to spend too many resources in research on pricing. But with the progress of market-based interest rate reform, pricing will take a large share of commercial banks’ resources, and will reflect their core technologies and core competitiveness, consuming a lot of energy and resources. In fact, Shibor can play a benchmark.
Shibor must become a recognized and authoritative interest rate benchmark to replace the benchmark lending and deposit rates set by the central bank. This being achieved, the central bank could gradually retreat from its intervention. Simply put, interest rate pricing in fact releases pressure.