Refinement Of The Commercial Bank Loan Pricing Under Conditions Of Multi-factor Study

Loan plays an important role in the commercial bank, the method and mechanism of loan pricing not only affect bank's income but also its asset quality and customer structure. If loan price is over high, bank will lose customer in the competition though its expected income will be higher. If loan price is over low, the loan revenue cannot compensate loss by default and operation cost. In recent years, especially with the quick step of market-oriented interest rate reform and the implementation of new BASEL Capital Accord, the problem of loan pricing has been researched more by commercial banks. This paper will discuss commercial bank loan pricing with the reference of western commercial loan pricing models, combined with present situation of banks in china, and give a comprehensive loan pricing method which concerns multiple factors. This dissertation takes the newest theory of credit risk management,cost measurement and loan pricing modeling for reference, and try to make breakthrough.This dissertation is composed of 5 chapters. In chapter 1, we described the realistic meaning of studying loan pricing as the basic study for the coming parts of this paper. In chapter 2, we carry on introduction on the Characteristics of traditional loan pricing models of china banks and analysis the short coming of this method. Chapter 3 analyzes the comprehensive loan pricing method which concerns multiple factors in detail. Chapter 4 gives an example to explain how the pricing model works and conducts a compare between the traditional method and this new one in pricing effectiveness. Chapter 5 is the last chapter of the dissertation. We emphasize the precondition of putting forward the comprehensive loan pricing method which concerns multiple factors importance and gives a very preliminary recommendation of how to put forward.