The Research On Loan Pricing Of Chinese Commercial Banks For Small Enterprises

Foreign and domestic economic development practices shows that the phenomenon that mall businesses exist in large quantities is a common phenomenon regardless of time and region, is the inevitable result and the inherent requirements of economic development, is the precondition to ensure the formation of normal, reasonable prices, to maintain the competitive edge and ensure stable economic operation, to protect the premise of full employment and conditions. Speeding up the development of small enterprise can lay a solid foundation for national economy keeping sustained, stable growth, can provide the community with more employment opportunities, also can promote agriculture, rural economic development, also can increase local revenue. But the current financing problem has become a bottleneck restricting the development of small enterprises.The spreading of the U.S. sub-prime mortgage crisis began in 2008 made our small business financing environment even worse. National and local government introduced various policies to help small businesses solve the financing problem. Commercial bank loans as the most important source of financing for small business, in practice the process of lending to small businesses also lack the smooth flow channels. One reason is that commercial bank lending to small enterprises didn't make full use of independent pricing. In China, a large number of new growth businesses can't put enough initial capital, and its collateral capacity is weak, the pricing of banks is a very important issue. Commercial banks therefore need a special loan pricing model for small business.By searching through the network and some information journal, we know that the theory of small business loan pricing formed earlier.Theoretical part is mostly based on a specific case outcome,but now the factors affecting commercial bank loan pricing are broader, more systematic.The market of Loan pricing went from the earlier seller's market into the buyer's market.In practice, the modern market-based commercial bank loan pricing started around the 1980s.Loan Pricing method gradually shifted from the method by the cost of bank-led, inward-looking pricing towards market-oriented, outward-looking competitive pricing. With the development of information technology and risk management tools, improved pricing techniques gradually became extensive intensive, pricing method became more and more refined. This paper discussed the four basic patterns of commercial bank loan pricing one by one, the cost-plus pricing, price leadership model pricing, customer profitability analysis and pricing methods based on RAROC.This paper, aim to study difficulties and specificity of commercial bank loan pricing to small businesses, combined with the state policies that support small businesses and the requirements of New Basel Agreement on the risk measurement, based on the studying of the pricing of commercial bank loans to small businesses related to the theory and practice, and finally attempts to establish a special small business loan pricing model for commercial banks. The commercial banks can flexibly use the model according to their actual condition, provide small business loans with more convenience while maintaining the balance of risks and benefits, make the price not only covers commercial bank's lending risk, ensure a certain level of profitability, but also best meet customer needs, support small business development and growth, and finally maintain their competitive position.