Study On Price-making On Rate Of Loan Against Warehouse Receipt Pledge In China Commercial Banks

The main goal of the article is to make sure of rate of risk compensation under breach of contract for loan & finding out the new methods of price-making for loan through studying the power of warranty.Loan against Warehouse receipt pledge is new form of financing in China though develop later, it settle the difficulty in financing for small and medium enterprises, also settle the difficulty in loan for commercial bank. From 2004,when Guangzhou development bank initial the Loan against Warehouse receipt pledge, the business developed and spread like mushroom after rain, many commercial banks follow the business of Loan against Warehouse receipt pledge, it play important role in promoting the development of our economy and strengthen the power of small and medium enterprises. But the theory of Loan against Warehouse receipt pledge is more backward than that of practice, not making out a new methods of pricing-making that different from common loan business with the features of Loan against Warehouse receipt pledge, to reduce the function of guide for theory against the practice. the article focus on studying on price-making on rate of loan against Warehouse receipt pledge, on the basis of analysis the operation mode and characteristics of Warehouse receipt pledge, studying the theory and practice of price-making of loan in domestics and overseas, drawing out the theory of rate of risk compensation under breach of contract for loan against Warehouse receipt pledge on the basis of power of warranty for property of pledge, presenting formula of price-making of rate for loan against Warehouse receipt pledge.The article firstly outlines operation mode and procedures of Warehouse receipt pledge and price-making for loan , studying the theory and practice of price-making of loan in domestics and overseas, analyze the different factors in price-making for loan between the Warehouse receipt pledge and common commercial loan, discussing the essences of making rate of loan against Warehouse receipt pledge.In chapter 3 and chapter 4, focusing on discussing the methods of price-making in loan against Warehouse receipt pledge. According three modes of loan against Warehouse receipt pledge, studying price-making for loan against the Warehouse receipt pledge in 3 classifications: in the mode of Warehouse receipt pledge in static state, to select the following factors as the evaluation: the power of changing into currency against property of pledge,floating of price and covering insurance. The evaluation index indentify into differences : the power of changing into currency against property of pledge in high,midpoint and low, floating of price in uprising,sable and decline, covering insurance with abandon or not, to grant evaluation index with different proportions, count out the power of warranty for property of pledge. According to the grade of power of warranty for property of pledge on the basis of certain standard, confirm rate of risk compensation under breach of contract for loan, hereof put rate of risk compensation under breach of contract for loan into the formula of price-making of rate for loan, thereof drawing out the rate of specific loan;the methods of price-making in loan against Warehouse receipt pledge are common both in static state and floating state, the main difference is floating in the forms and quantity for property of pledge in floating state, in order to control the risks for commercial banks, to confirm the different rates of risk compensation under breach of contract for loan against different property of pledge, on standard of maximum rate of risk compensation under breach of contract merge into the rate of loan. The modes of Loan against confirming Warehouse pledge classify into the credit warranty and pledge warranty. At beginning of business, credit warranty of supplier is fundamental, then transfer into pledge warranty accompany with the goods storing in the warehouse, if only evaluation on the power of property of pledge, may occur the risks to commercial banks. The article study on the classifications of credit for small and medium suppliers , to confirm the rates of risk compensation under breach of contract for loan against classifications of credit for small and medium suppliers. To compare this rate to rate of risk compensation under breach of contract against pledge, select the higher rate as the basis rate of loan.The article use the practical methods and cases to check the forms of price-making & rate of loan, and delivery suggestions on loan for commercial banks.