Study On Loan Pricing Of Commercial Banks During The Interest Marketization In China

The interest marketization in china began in 1996 from which china central bank gradually unloosened inter-bank offering rate and bond market rate. A report of Push interest marketization steadily was issued by china central bank in January, 2005. In the long course of interest marketization, government decides the stipulation of interest and the commercial banks have to execute the regulation accordingly. Therefore, under the condition of interest supervision, whether there is a market regime of interest or how the commercial banks decide their loan pricing? It seems both of them unrelated, in fact, the other way around, there is a close relation between the two questions. As we know, loan pricing is a kind of behavior choice based macroeconomic condition by microeconomic body. If we study deeply how the commercial banks decide their loan pricing under the condition of interest supervision, what we study will benefit the business goal of commercial banks. All of above are the background of this thesis.Whether there is the phenomenon of credit rationing in our credit market, which has been studied by lots of scholars. American interest freedom in late 1970s indicates that there is no inevitable relation between interest regulation and credit rationing. Stiglitz and Weiss used non-symmetrical theories to interpret credit rationing. Because the long planned economy in our country leads to finance restraint and dual frame of economy, and the non-stated economy is discriminated on loan price and loan quantity, all of these things stimulate the development of informal finance market, which provided banks or band managers with incessantsource of rent for their rent-seeking. The phenomena of loan rent-seeking and secret interest reflect that distorting of behavior of bank operation and regime of bank loan pricing.After the interest marketization, the commercial banks will face to the situation of determining the loan price by themselves. Now the loan pricing models used in foreign country are three: model of based interest added points, model of positive risk adjusted benefit, model of customer profitability analyses. If all the models adapt to the commercial banks, there are no experienced data. This thesis analyzes the microeconomic individual body's choices, then introduce the concept of dual interest according to other experts' research. At last, the paper gives a designed model to help commercial banks to determine the loan price. I think the model and the paper benefit to the banks.The thesis consists of six parts. The first part is the preface of this paper. The second part introduces some theories of loan pricing. In the third part I introduce the interest supervision in our country and analyze the theory of loan rent-seeking studied by several scholars. On the base of above analyses, I study the status quo and questions of loan pricing in commercial banks of china. In the following part, as the critical part of the thesis, I design a model adapting to the loan pricing of commercial banks in our country. When I design the model, I use the bond term interest model for reference and take into account of the risk factors taking place before or in the middle of or after the approval of the loan by commercial banks.