Research On Loan Pricing Of Commercial Bank Based On EVA Value Management

Nowadays, there are two trends in financial reform of China: the one is the reform of financial interest rate system which is represented by the interest rate liberalization is coming near and near, the market-oriented interest mechanism is being turned realism. the other is the reform of bank Internal operating mechanism which is charactered by perfecting governance structure is just like a raging fire,the value management system based on EVA is adopted and operated by bank in China aiming at maximizing value . The interest rate liberalization brings many chances and serious challenges to bank in China, the value management based on EVA promotes bank in China to make choice and decision for financial performance management. Loan business plays a prime role on asset structure of commercial bank in China. On the data statistics of Almanac of China's finance and banking (2004),Loan accounts for above 50% of commercial bank's asset in China, loan revenue take up above 60% of commercial bank's operating income ,So it is important that whether loan price could cover cost and risk of bank , and whether it could get the maximum of benefit . On the background of interest rate liberalization in China, the rational loan pricing methods not only are an issue that still not be solved in the theoretic research, but also have practical significance to commercial bank. Based on these reasons, this paper is set in interest rate liberalization in China and is aimed at studying rational loan pricing methods of commercial bank based on EVA. On the basis of the loan pricing pattern analysis of foreign and domestic commercial bank, combined with practical statistic data analysis of loan interest rate which one of domestic commercial bank executed last year, the paper gives some constructive suggestions on how to solve the difficulties and baffles confronted by...