Study Of Commercial Bank Loans To Smes Pricing Mechanism

Based on the theories of loan pricing, this dissertation analyzes several major domestic and foreign models of loan pricing, taking into consideration of the characteristics of small and medium enterprises(SME) financing. It chooses the model of loan pricing risk-adjusted returns as the best one for commercial banks in dealing with SME loan pricing. The dissertation also discusses the benefits of risk-based loan pricing adjustment method used in the pricing of SME loans. The core of the risk-adjusted returns SME loan pricing model is measurement-based risk premium. It also explores the way of applying the KMV default model for risk to calculate SME's credit default rates and credit risk premium. Using the data of SME Listing in the Shenzhen stock market, the dissertation demonstrates the validity of KMV default model for risk and discusses the method of applying this model to the unlisted companies. Finally, the dissertation studied the pricing model of Bank of China Taizhou Branch and prove the validity of the SME risk-adjusted returns loan pricing model.