The Study On Pricing Of Intermediate Business Products In Commercial Banks

Commercial bank along with a thriving economy and financial system reform gradually deepen, as well as community bank needs rapid changes of itself is also facing many problems in this era of constraint, the same industry, such as:increased competition, increased business risk, The business scope is limited, deposit and lending interest rate differential smaller, more single profitable way hindered the healthy and stable development of China’s commercial banks.After China’s accession to the WTO, many foreign banks use their own in the technical aspects of electronic networks and information technology and other high-tech advantages of foreign banks opening up of national policies in advance to seize China is still in the early stages of development of intermediary business market. For China’s commercial banks, the lack of state-of-the-art in the middle of business management and mature pricing mechanism, and thus the development of intermediary business is relatively slow. Its mainly as follows:First, most of the domestic commercial banks intermediate business income relative to the proportion of total income is much lower than in Western countries than mature and stable markets in Asia such as Japan, Singapore, there are not a small gap. Second, the scarcity of domestic commercial banks variety of fee-based products, narrow coverage, are concentrated in the original exchange, collection and payment, credit and letters of credit, mortgages and other products. Contains high-tech and value-added consulting services, financial derivatives transactions in the middle of business development and lack of coverage. In recent years, the accelerated development of the domestic capital market, a lot of money directly from the bank intermediary direct access to capital markets, the same time, the interest rate market accelerated squeezing the profit margins of the traditional deposit and lending business before. Thus the face of the above intermediate internal and external business market situation, efforts to improve the operational capacity, the development of intermediary business, the only choice for domestic commercial banks. In recent years, China’s commercial banks in financial services has made considerable development, and achieved certain results, but there are still many problems on the development of intermediary business, its roots in the fee issue is not perfect, the price of a management mechanism to be improved. A long time, China’s commercial banks to intermediate business just as traditional deposit and loan business accessories, the two intermediate business pricing related to their own development and future is only as ways and means to attract customers is not enough. Low-cost treatment of fee-based products is not only a tremendous waste of resources, is a violation of the principles and objectives of the market of profitable operations. June26,2003, issued by the Interim Measures for the Administration of commercial banking services pricing, the rights of commercial bank charges for fee-based products. Thus, how to use the pricing power of the existing fee-based products to compete in the market for pricing local advantages, and ultimately the profitability target of the operation and management, has become an important topic of the present stage of China’s commercial banks.Before the intermediate business pricing charges the writings of the study, with a high theoretical value, there are also some shortcomings. Many scholars and charges for the pricing of fee-based products is the use of the method of loan pricing, while ignoring the characteristics of high added value; Second, existing research object does not distinguish between different fee-based products, the lack of scientific. It is in this context that, on the basis of previous studies, focuses on the more suitable for China’s commercial banks intermediary business pricing and billing, analysis and pricing model, using the theory and practice research, empirical analysis and case studies of combining research methods, in accordance with the following part:(1) From the pricing objectives, principles and influencing factors on the domestic intermediary business pricing system described by studying non-interest income elasticity of intermediate business income, this stage domestic commercial banks fee-based products pricing system some problems.(2) This article is drawn through the establishment of model analysis, banks are more efforts, the government goal of maximizing social surplus is more easy to achieve, the harder it is to achieve the commercial banks to maximize their own profits, in order to prove the government guidance pricing invalid, Bank of the need for independent pricing and puts forward the pricing of domestic commercial banks should take a combination of both modes.(3) This article first expounded the pricing principles and theoretical basis of the three pricing models, and analysis to determine the scope of the three models, and pointed out the defects of single model. Considering from factors such as market competition and combination products, the establishment of a comprehensive pricing model, integrated model of pricing schemes. Finally, combined with China’s national conditions, the price adjustment on the consolidated model.(4) By credit card business, online banking business, and several special fee-based products instance empirical analysis, several models used in which obtained in the actual pricing process, pricing interval needs to be more precise conclusions.(5) The concluding part of the shortcomings and deficiencies of the middle of this stage domestic commercial banks business pricing put forward some proposals to establish the the intermediary business product costing and cost-sharing system.