The Research On Loan Pricing Of Commercial Bank In China

With the development of market economy, especially entering WTO, commercial banks gain great process in reform, but still have many problems, loan pricing is just one of them. Loan pricing plays a key role in the marketing and competition of commercial banks, and contributes greatly to banks to develop the market, to improve the profit and to strengthen the customer's loyalty.Firstly, the author discusses the loan pricing theory, this means credit rationing, converse selection and inspirit effect, etc. Second, the author deals with the methods of loan pricing in foreign countries and in China. Return of risk adjusted asset, leading pricing, and price return analysis are three main methods in western banks. Loan cost pricing, relation pricing and market reference pricing are three main methods in our banks. Of course they are rather different.The author emphasizes problems of loan pricing in our banks, namely, the credit resources disposition efficiency is low, pricing terms are not suitable, pricing loan neglects the professional risk, etc. Then the author analyze the factors that influence loan pricing, containing prime rate, credit risk, capital cost, overhead expense, etc. Finally, it reaches loan pricing method that fit the develop of commercial bank in our country that combining loan pricing method overseas commercial bank and the current situation of commercial bank in our country. To measure the credit risk accurately, the author modify the KMV model about state stock pricing. Chapter one is foreword, it discusses the operation significance of loan pricing and the current situation of loan pricing in and overseas our country. Chapter two expands the fundamental theory and methods about commercial bank. The theory of credit rationing is leadership in the chapter and it analyses the influence to loan pricing from converse selection and inspirit effect and introduces some main west commercial bank loan pricing methods. Chapter three analyses the loan pricing current situation and existence question of commercial bank in our country and analyses five questions to the loan pricing restriction. Cut throat competition of commercial banks influences loan pricing. Chapter four analyses the factors containing monetary policy , credit risk and capital cost that influence loan pricing and discusses the loan pricing method of commercial bank in our country. It modifies the measure model of credit risk that is KMV model.