Discussion On Loan Pricing System Of The Rural Credit Cooperative

As the reform on market-based interest rate of our country is pushed forwards, the financial institutions of the banking business pay attention to the pricing on loan or other assets. Loan pricing plays a key role in the marketing of the financial institutions of the banking business with homogeneity. The rural credit cooperatives are the main composition of the rural finance system. The operating scope of the rural credit cooperatives are similar to the commercial bank, so loan contributes greatly to the rural credit cooperatives to develop the markets or to improve the profit . Because historical and realistic reasons, loan pricing methods have not received the due attention in the rural credit cooperatives, which make the rural credit cooperatives lack essential theoretical research and technological reserve to loan pricing. Loan pricing has become the emergent and significant task for the rural credit cooperatives.The main purpose of this dissertation is to discuss the basic theory of rural credit cooperatives for improving the ability of loan pricing .First of all, the author outlines the correlation theory of loan pricing that are the interest rate decision theories, the credit rating theories and the rural finance theories. Secondly, the author introduce the loan pricing definition,the loan pricing goal and the factors influencing pricing. Thirdly, this dissertation comments on the complete pricing system in financial institutions of the foreign. Generally speaking, foreign loan pricing modes includes: cost-plus loan pricing, leading pricing, custom profitability analysis and RAROC model. This dissertation introduces foreign loan pricing methods and the features of loan pricing in the foreign rural financial markets. The author hopes to make reference to the rural credit cooperatives of china though analyzing and comparing the methods of loan pricing. Fourthly, the dissertation concentrate on the history and the current situations of the loan pricing system of the rural credit cooperatives. And the author analysis the reasons of the problems in the loan pricing system of the rural credit cooperatives. Fifthly, the dissertation put forward the suggestions that how to improve the pricing ability of the rural credit cooperatives. It is pricing system which includes pricing thought, pricing rules and pricing methods.