Discussion Of Fund Transfer Pricing In The Industrial And Commercial Bank Of China

As the price of fund, the interest rate holds the extremely important status in the financial market. Liberalization of interest rates is important during financial reform, and the commercial bank is the most important participant in liberalization of interest rates. Liberalization of interest rates made it possible that the bank expand the pricing authority to the product, and fund transfer price is the foundation of accurate product price. It is also the most effective method which can aggregate the product price, the resources disposition and the achievements inspection. Fund transfer price is the important attribute and the regulative method that effects resources disposition and achievements compensation in organizations. It is significant to bank management. Resent years, the Industrial and Commercial Bank of China reforms fund system, using the method to improve flow and structure of fund, and the reform is a long practical process. Upon Research and practice of anterior scholar, the paper analyses the existed problems of the fund transfer pricing in the Industrial and Commercial Bank of China, and refers to the pattern and method of foreign bank, then puts forward the innovative measures, trying to improve the fund transfer pricing system of the Industrial and Commercial Bank of China.This article consists of four chapters:Chapter one is about analysis of present fund transfer in the Industrial and Commercial Bank of China. Fund management is the precondition when choosing fund transfer pricing pattern. This chapter first describes the fund reform course in the Industrial and Commercial Bank of China. It has formed price pattern of "two levels of pricing, the different management". But it is not completely solved the problem such as allocation of resources, product pricing, achievement valuation, risk administration.The second chapter is about application of fund transfer pricing in western banks. It describes the fund transfer process, the pricing pattern, the pricing basis, the pricing method which having been used in west commercial bank. The fund transfer process includes fund concentration and allocation. The pattern includes three kinds. Each kind of pattern is separately suitable for the different bank. Fund pricing basis mainly is the actual cost, the marginal cost and the consultative price. Fund pricing method includes single-pool method, multiple-pool method, matched funding method and contract spread method. Matched funding method is the most complicated method, and that is the most effective method, so major commercial banks adopt this method. By comparing, considering the reality of the Industrial and Commercial Bank of China, this chapter has brought forward the suitable choice of the pricing pattern, pricing basis and pricing method to the Industrial and Commercial Bank of China.Chapter three is about improving content of the fund transfer pricing in the Industrial and Commercial Bank of China. Improving target is to build the fund transfer pricing system that suits the Industrial and Commercial Bank of China's reality and international modernized commercial bank. The improving content includes founding organization system, practicing entire fund concentration and allocation, making scientific fund transfer price.Last chapter is about the execution of improving system. The paper has analyzed the advantage and the difficult when being put into effect, and suggested idea of solving difficult.Based on studying the relevance learning, this paper includes author's view to fund transfer pricing in the Industrial and Commercial Bank of China. Making a general observation of full paper, in my humble opinion, there are several characteristic:1. In domestic research of the fund transfer pricing, the majority is general research to the commercial bank, few is to the Industrial and Commercial Bank of China or some other specific commercial bank. Although there are minority fund transfer pricing research to the Industrial and Commercial Bank of China, mainly is before the development of fund reform. Faced to the reform, from investigation of fund management in the Industrial and Commercial Bank of China, this article stated the present way of insufficiency, and discussed improving the fund pricing.2. Compared with the application of fund transfer pricing in west commercial bank application, from the several aspects of pricing pattern, the pricing basis, the pricing method, the paper has brought forward the suitable choice to the Industrial and Commercial Bank of China.3. In view of insufficiency of fund transfer pricing in the Industrial and Commercial Bank of China, this paper proposed the improvement goal is to establish the fund transfer pricing system that suits the corporation's reality and connects international modernized commercial bank.The paper's deficiency lies in that the execution opinion of improving system is insufficient, especially about scientific formulation in fund price, and internal income rate curve waits for further study.