Research On Loan Pricing Of Small And Medium-sized Joint-stock Commercial Banks

Loan pricing refers to the process of making a loan price. In a general sense, the price of loans is a generalized interest rate, namely the ratio of the sum of the interest and the related costs to the loan principal. In the capital loan markets, interests are usually regarded as the "price" of the lending money. Like substantial commercial prices, interest rates, as the price of loanable capital is also the basic element of the market mechanism, and one of the necessary conditions with which the market mechanism play a role, and it has functions such as guiding optimal allocation of resources, promoting steady economic growth as well as income distribution.With the fast development of the process of marketlized interest rates of China, the financial institutions begin to pay a attention to pricing problems of loans and other assets.The financial institutions regard loan pricing as an important means of competition against their peers. The Small and Medium-sized Joint-stock Commercial Banks of China are important components of China's financial system, the loan business is their main business of assets, and also their main sources of profits and the sources of risk. Due to historical and practical reasons, The Small and Medium-sized Joint-stock Commercial Banks of China have not yet paid enough attention to the loan pricing, and lack the necessary theoretical research and technological reserves., How to determine the price accurately and reasonably is a new problems which The Small and Medium-sized Joint-stock Commercial Bank of China are facing.The main purpose of this dissertation is to discuss the basic theory of The Small and Medium-sized Joint-stock Commercial Bank of China for improving the ability of loan pricing. First of all, the author Outlines the related pricing theory of The Small and Medium-sized Joint-stock Commercial Bank of China:theory of interest rate decision, theory of credit rationing, theory of imperfect competition in the market. And elaborate on the pricing mechanism of foreign banks and financial entities, and on the loan pricing model and the different characteristics of loan pricing foreign financial markets as well, in the hope of playing a role in the integrity of pricing mechanism of The Small and Medium-sized Joint-stock Commercial Bank of China loans. Then, this article summarizes the loan pricing methods and the current situation of The Small and Medium-sized Joint-stock Commercial Bank of China, and analysis the causes that lead unsoundness of loan pricing mechanism of The Small and Medium-sized Joint-stock Commercial Bank of China and the factors that effect the loan pricing of The Small and Medium-sized Joint-stock Commercial Bank of China. Finally, with the combination of the above, put forward the improvement of The Small and Medium-sized Joint-stock Commercial Bank of China loan pricing methods, as well as several ideas on The Small and Medium-sized Joint-stock Commercial Bank of China loan pricing mechanism. The writer believes that strengthening the scientific concept of loan pricing and establishing a standard loan pricing system, developing loan pricing model which accommodate those The Small and Medium-sized Joint-stock Commercial Bank of China will improve loan pricing meaning for our The Small and Medium-sized Joint-stock Commercial Bank of China.