The Analysis And Design Of A Bank For Loan Pricing System

The interest rates marketization refers to that the currency administrative authority loosens the control over or deregulates the interest rates in compliance with the law of market value, where the interest rates level is determined by the situation of the supply of and demand for market funds. The core content is the marketization of the interest rates formation mechanism. Since the beginning of the inter-bank borrowing (lending) by the People's Bank of China in June 1996, our state has deregulated the interest rates in various financial spheres, and the financial institutions has own certain power in the floating of the loan rates.The deepening of the reform in interest rates marketization will result in profound effect on our economic and financial development, where the commercial bank stands in the breach. In face with the continuously enlarged floating range of the loan rates, most commercial banks, esp. the state-owned ones have not established their effective loan pricing mechanisms yet. As the scientific pricing technology is lacking, it is difficult for them to adapt to the market competition.Therefore, based on the present operating situation of A bank, by reference to the advanced management theory, experience and technology of western commercial banks, from the angle of practice and operation, this thesis analyzesand summarizes the factors that should be taken into consideration, the principles that should be complied with, the procedures that should be conformed to and the technology that should be applied in loan pricing for the state-owned commercial banks, and also designs the loan pricing system therefor including "Different Levels Authorization Management System for Loan Pricing" and "Loan Pricing Flow".The first part of this thesis gives a brief introduction to the theories related to the interest rate marketization and the foreign reform practices. It analyzes the present situation of the reform in domestic interest rates marketization as well as the necessity and urgency to make research on loan pricing system for the commercial banks. The second part analyzes and probes into the objective, methods, procedures and so on of the loan pricing system for the commercial banks, and put forwards the general train of thoughts and model of the pricing system. The third part is the key point of this thesis, for it puts forward the objective and principle of the loan pricing for the state-owned commercial banks, and designs the "Different Levels Authorization Management System for Loan Pricing" and the detailed "Loan Pricing Flow" for the operating banks. Based on the analysis on the actual loan pricing case of the state-owned commercial banks, the fourth part evaluates and summarizes the designed pricing system and the situation of the loan pricing management of the state-owned commercial banks.At present there are few cases of state-owned commercial banks with system analysis as well as the design of relevant system and flow related to loan pricing. Therefore, the probe of this thesis into the loan pricing system has relatively great operation significance for the promotion of credit management of the state-owned commercial banks, standardization of the loan pricing activities, upgrading of the loan price effectiveness, etc.. However, as limited by the conditions such as the credit risk measurement, funds transfer pricing, accounting system, electronicconstruction, basic management and so on, it calls for major efforts and active reform to probe into the effective operation of the designed pricing system by the state-owned commercial banks.