Analysis About Chinese Commercial Bank Loan Pricing

With the gradual deepening of opening-up reform and WTO era, China's financial markets gradually move towards full liberalization. Financial regulatory and supervisory standards, competitiveness among Chinese commercial banks, customers, products and interest rates become more international. During this process, Chinese market-oriented reform of interest rates has also made substantial development. Commercial banks in loan pricing have adopted floating differentiation, but this way is not fine in the new era because of its randomness, lack of science. Low sensitivity of price and poor pricing power are becoming more prominent, but loan pricing is the core components of a commercial bank management system and key factors to ensure that commercial banks are sound and sustainable operation. So the scientific and reasonable loan pricing models will be of great significance for modern commercial banks.In this paper, we firstly analyze significance and background of loan pricing with graphical methods, factor analysis, comparative analysis method and empirical analysis methods. Then on the basis of reference to domestic and foreign scholars on commercial bank loan pricing theory study, we put forward the basic elements of loan pricing and basic principles. Followed by the adoption of the main commercial bank loan pricing methods and models of Western developed countries, we summarized its development process, namely "itself costs and proceeds, consideration of market impact, business relationship between customers and commercial banks, and the use of economic capital and the loan risk ". Pricing model are mainly experienced a "cost-plus", "base rate plus points", "Customer profitability analysis" and "venture capital pricing", as well as we made a summary and draw out a conclusion that commercial banks in their loan pricing should pay more attention to all-round cooperativeness with customers, take market competition into consideration, cover the various costs, expenses, compensation for the risk of loss, and achieve risk-free capital gains. After analyzing the loan pricing problems and the reasons, we put forward the innovative, correct and reasonable loan pricing model and verify its accuracy and reasonableness. The main innovation lies in integration of various ideas and reality of Chinese commercial banks, further research on relations among loan pricing, determination on the starting point, core and other factors, and putting forward "benchmark lending rate of return as the starting point, the overall business relations between commercial banks and their customers as the core, and taking the level of market prices as well as the loan risk premium into account". And the method designed is easy to understand and helpful for Chinese commercial banks.An inadequacy of the paper is that data analysis is slightly inadequate.