The implementation of the quadruple upper limit of the LPR seeks to mitigate lending rates and alleviate overall financing burdens for SMEs.However,since its announcement,there has been a consistent downward trajectory,signaling potential for further reduction.Notably,the existing interest rate ceiling falls below China's historical rates and market averages.Yet,a generalized regulatory framework neglects the intricacies of private lending,potentially inducing financial repression and worsening SME financing challenges by constraining loan availability.A nuanced classification adjustment could optimize the current judicial regulatory framework by discerning between production and consumer loans,thereby marginally easing restrictions on the former to stimulate borrowing.Moreover,categorizing loans based on their term structures could enable the application of the quadruple LPR upper limit to long-term loans exceeding five years.Through the refinement of judicial regulation,adverse spillover effects on SME financing stemming from adjustments to the quadruple LPR upper limit can be alleviated.
NETL
NSTL
万方数据
