Research On Loan Pricing Of Commercial Bank

This essay commences from the limitation and importance of loan pricing of local commercial banks, elaborating the principle of scientific loan pricing .It analyzes four main core factors of loan pricing ,including funds cost, operating cost, expected loss of loan (credit risk margin) and unexpected loss of loan.By analyzing the cost of loan, it emphasizes basic methods of fund transferable price, and focuses on the application of cash flow-based the-due-date-matched method in loan pricing.Analyzing the operating cost of loan emphasizes in the application of the activity cost method in loan pricing.By analyzing the expected loss of loan ,the main factor is the affects of credit risk margin and the core factor――measurement of default probability .By analyzing the unexpected loss of loan, the relative of economic capital, unexpected loss of loan and loan pricing is firstly analyzed. The basic allocation method and structure which named adjusted factor of economy capital is introduced.At last, the cost of economic capital and the application of economic value-added in loan pricing is analyzed as an example.After theoretical analyses, one example of the application of cash flow-based the-due-date-matched method in deciding fund transferable price in ABC bank is introduced. And several examples of loan pricing is explained in detail in order to strengthen the understanding to the main factor of loan pricing.The summary puts forward risk-covered method of loan pricing which is the total cost method.The total cost method is a overall risk pricing method based on fund transferable price and cost analyze. This method covers loan activity-related overall cost, including fund cost, expense cost, taxation cost, the risk cost and loan target revenue. It matches the principle of cost-oriental, the asset liability and strategy -oriental.