Research On The Pricing Of Commercial Banks Personal Loans Under The Conditions Of Market-oriented Interest Rates

With the opening of the financial markets, market-oriented interest rate has become the main content of China's financial market reforms. In the increasingly open of financial environment and competitive situation, the domestic commercial bank put forward to higher requirements for competitiveness and profitability. Particularly in the field of personal loans which has tremendous potential to development, domestic commercial banks are also launched unremitting exploration on innovation of new operations and on the fields of enhance the level of risk management and profitability. Under the conditions market-oriented interest rate, how to scientifically price become one of the main questions, which not only effectively control of the risks and enhance revenue, but also increase market share. This is exactly the problem of this article studied.Firstly, after affirming the importance of the personal loan pricing research, this paper discussed the related contents of personal loans pricing, reviewed the development and related research in the domestic and abroad about the pricing of personal loans at a theoretical level.Secondly, the paper analysis the status quo of the pricing of China's Commercial Banks personal loans. Furtherly, it analysis the macro-factors and micro-factors, which are impacting the pricing of China's commercial banks personal loans. And then it puts forward the problems of the pricing of China's Commercial Banks personal loans.Thirdly, under the conditions of the analysis of the pricing of China's commercial banks personal loans, the paper puts forward principles and pricing model of the pricing of China's commercial banks personal loans- the combining of standard pricing method and based on RAROC pricing method. The methods first determine the types of personal loans pricing based on objective factors which is easily defined. Then it calculates the price of each type of personal loans based on RAROC pricing method. It also suggested that make a single floating rate loans adjust based on the score cards and ultimately determine the single personal loans interest rates. This article also conduct empirical analysis based on the secondary branch of China Construction Bank.Finally, this paper makes recommendations about how to improve pricing power of the commercial banks personal loans from the external and internal factors.