Pan Gongsheng: Exit from benchmark deposit and loan interest rates; market-based indicators to replace them

At the opening ceremony of the 2026 Financial Street Forum Annual Meeting, Pan Gongsheng, Governor of the People's Bank of China, stated that the bank will exit the use of benchmark deposit and loan interest rates. As interest rate liberalization reforms advance, these benchmarks are gradually being replaced by market-based pricing standards. Bank loan rates already have multiple pricing benchmarks, including the Loan Prime Rate (LPR) and the interbank overnight reverse repurchase rate. Starting from the first quarter of this year, the People's Bank of China has publicly announced average deposit interest rates for various tenors as a reference for bank deposit pricing. In the next step, the PBOC will promote the replacement of interest calculation bases in these areas with market-based interest rate indicators to achieve the exit from benchmark deposit and loan interest rates for financial institutions. (Caixin)