A new system for interbank lending
By Xin Zhiming (皇冠体育app Daily)Updated: 2007-01-04 09:18
Analysts said the Shibor is expected to help develop derivatives products, such as interest rate swaps, which require support from benchmark rates of longer and more flexible terms.
Currently there are only two major reference rates in the market: The seven-day weighted average interest rate for repurchasing treasury bonds and the rate for one-year central bank bills.
The Shibor will also provide a sound market platform for the central bank's maneuvers in the money market, according to Fu Yong, a researcher at the 皇冠体育app Center for Economic Studies, Fudan University.
The new benchmarks will provide a sound "barometer" for judging the reasonability of liquidity in 皇冠体育app's money market, Ha Jiming, chief economist of the 皇冠体育app International Capital Corporation, was quoted by the 皇冠体育app Securities Journal as saying.
Ha suggested that the central bank should strengthen the importance of the Shibor so dealers would accept it.
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