The Research Of Load Pricing Model On Commercial Bank Credit Card

Today, Chinese economy is more and more mature to openness, the level of it's integration with the international sound of footsteps is getting closer, so the transformation of the work is in the immediate moment. As for the banking system which activate every business to be smooth developing is not yet fully coming to the market, especially,the domestic commercial bank,loans as its core business, its loan pricing power has become overstretched and can not run freely, only in accordance with the provisions in the benchmark interest rate the central bank Within the upper and lower price band, the authors found further through access to relevant data, in accordance with the implementation of the benchmark interest rate commercial banks actually accounted for a large proportion of the number, which greatly reduces the commercial banks and foreign competitiveness of developed countries, but also hindered the expansion of our Of the extent and the overall development of the domestic economy.Similarly, with the high speed development of economy, China's credit card business has got unprecedented development space, especially since 2003, the domestic banking take credit card business as a major task for the whole year, obviously, which reason is that China is a large country which is extremely rich human resources, while credit card spending in line with current consumer attitudes, but also conforms to the trend of the times. So no doubt, the credit card business development in the country will accomplish much. However, according to the above analysis, we know that the credit card loan pricing, as part of loan pricing, its power is equally weak, and in the pricing process, never taking from the perspective of the customer. This paper argues that the customer is an important asset of commercial banks, like stocks and other assets, should be the same as to their pricing, in order to obtain more profits.Therefore, this article conducted a careful study of the pricing model about credit card loans to commercial banks on basis of previous research in order to actively respond to the challenges of globalization. Paper is divided into five parts:The first part, this paper describes the background to the study, research status, etc.The background is mainly the commercial banks which have internal power and external constraints of pressure to the degree of maturity of the market in the future, intrinsic motivation, respectively, from the Sino-US commercial bank loans Comparison of the degree of interest rate market,illustrating the future of commercial banks to the inevitable trend of the market.And external constraint does the same work from the New Basel Capital Accord, through the perspective to review risk of international banking regulatory philosoph in today, and give China's commercial banks appropriate risk management recommendations.The second part introduces the empirical part of the basic theory, including customer lifetime value theory, commercial bank loans,the cash flow characteristics and the need to build relevant databases, etc. These theories which are constructed model of commercial banks credit card pricing is essential to the preliminary work.The third part, I make a full empirical analysis of the work, that theoretical foundation bases on customer lifetime value of commercial bank credit card loan pricing model, using the formula: Profit = Income - Costs– Lose+Net Recover MoneyAnd using excel software and related functions to analyze different variables of commercial banks credit card profit, such as the main variables of interest income, customer usage and payment of credit card rates, customer account opening fees, credit card annual fees and cash withdrawal fees; variables which affect the cost of credit card payments are mainly interest on deposits, advertising costs, labor costs of building the database and related management fees; variables which affect the lose are credit losses and credit card fraud losses. And then construct the simulation data, and calculate variables value and net present value, each time changing the input values, we get a corresponding output value to decision makers to reach expectations, at the same time,it is appropriate for this document amount of loan prices.The fourth part, a numerical example. By setting a reasonable simulation data to show model. In the demonstration, with the legend analyzation, according to the intention of policy makers, changing the value of the relevant inputs to policy-makers to be satisfied with the output values, that is, lending money is completed the price.The fifth part is the last part of the full text .It mainly summarizes the main research and extension part of the paper should be, and gives the relevant policy recommendations. This extension is still to be improved part of the place, that this study applies only to cases under the conditions of market economy, for instance, China is still in the micro-market interest rate does not apply under the circumstances; Secondly, this research is only limited to individuals credit card pricing model,for other loan structures, such as business loans, secured loans do not apply. Of course, I will continue to study this limitations.Therefore, comparing with previous related research, the innovations of this paper are the following:At first,In the majority of existing domestic references, scholars discuss the problem which is more limited in the scope of the planned economy period, related to the mature market economy conditions is so minimal. In this article, I learn from foreign developed market of economic development, in-depth discussion about the credit card loan pricing technology, entirely to the market economy in China.At second,the study of commercial banks loan pricing in the past, the majority of scholars consider loan pricing based on the basic assumption of social is standing on the point of view, and the discussion in this article, I base on customer lifetime value ,focus on its pricing. At last,the paper argues that low-risk customers are not necessarily good customers, the high risk customers are not necessarily poor customers.