Prime Rate Là Gì

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James Chen, CMT is an expert trader, investment adviser, & global market strategist. He has authored books on technical analysis và foreign exchange trading published by John Wiley và Sons và served as a guest expert on CNBC, BloombergTV, Forbes, và Reuters among mỏi other financial truyền thông." data-inline-tooltip="true">James Chen
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James Chen, CMT is an expert trader, investment adviser, and global market strategist. He has authored books on technical analysis and foreign exchange trading published by John Wiley và Sons & served as a guest expert on CNBC, BloombergTV, Forbes, and Reuters aước ao other financial media.

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The prime rate is the interest rate that commercial banks charge their most creditworthy corporate customers.The rates for mortgages, small business loans, & personal loans are based on prime.The most important & most used prime rate is the one that the Wall Street Journal publishes daily.

What Is the Prime Rate?

The prime rate is the interest rate that commercial banks charge their most creditworthy corporate customers. The federal funds overnight rate serves as the basis for the prime rate, và prime serves as the starting point for most other interest rates.


Understanding the Prime Rate

The prime rate (prime) is the interest rate that commercial banks charge their most creditworthy customers, generally large corporations. The prime interest rate, or prime lending rate, is largely determined by the federal funds rate, which is the overnight rate that banks use lớn lend lớn one another. Prime forms the basis of or starting point for most other interest rates—including rates for mortgages, small business loans, or personal loans—even though prime might not be specifically cited as a component of the rate ultimately charged.


Interest rates provide a way lớn cover costs associated with lending & they act as compensation for the risk assumed by the lender based on the borrower’s credit history and other financial details.

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Determining the Prime Rate

Default risk is the main determiner of the interest rate that a bank charges a borrower. Because a bank's best customers have sầu little chance of defaulting, the ngân hàng can charge them a rate that is lower than the rate they charge a customer who has a greater likelihood of defaulting on a loan.


Each ngân hàng sets its own interest rate, so there is no single prime rate. Any quoted prime rate is usually an average of the largest banks" prime rates. The most important & most used prime rate is the one that the Wall Street Journal publishes daily. Although other U.S. financial services institutions regularly note any changes that the Federal Reserve (the Fed) makes khổng lồ its prime rate, and may use them to justify changes to their own prime rates, institutions are not required to raise their prime rates in accordance with the Fed"s.


Prime Rates and Variable Interest Rates

In the case of variable interest rates, such as those used on certain credit cards, the card’s interest rate may be expressed as prime plus a phối percentage. This means that the rate rises & falls with prime as the underlying base rate but will always remain a fixed percentage greater than prime.


Prime Rate & Best-Qualified Customers

Generally, the prime rate is reserved for only the most qualified customers—those who pose the least amount of default risk. Prime rates may not be available to lớn individual borrowers as often as lớn larger entities, such as corporations & particularly stable businesses.

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Even if the prime rate is phối at a particular percentage, say 5%, a lender still may offer rates below 5% lớn well-qualified customers. The prime rate is used as a benchmark only, & though it is likely to be the lowest announced rate available, it should not be considered as a mandatory minimum.