Study Of China's Commercial Bank Loan Pricing

Banking takes the principal status in our money market structure. As the development of Financial Industry, the diversity of financial subject especially the full opening of financial market, banking in our country is facing more and more drastic competition. Loan Pricing is an important jetton for marketing of the commercial bank, and it's also important for increasing the business profit and retaining the clients.Western financial industry developed very early, and as a result much more mature than ours. Their loan pricing of commercial banks mainly includes Cost-Plus Pricing Model, Price Leadership Model and Customer's Profit Analysis Model. However, our commercial banks have not set up a suitable Pricing Model. This thesis is trying to conceive our own load pricing model.The banks should make sure the bench interest rate through Active-Behavior Cost beginning with the inside cost, then classify the clients, and adjust the breakeven interest rate accordingly. In this way, we can build up a pricing system giving attention to both inside and outside which can ensure the payoff ability and at the same time retaining the clients. Load pricing is not isolated; it needs the supporting of related management system. The banks need to perfect their inner management, build up Active-Behavior Cost system, enhance the ability of risk management, and both the ability of collecting and processing data. Our country should keep on deepening the financial innovation, improve the supervising system of finance and reinforce the construction of social credit system.