China Merchants Bank Loan Pricing Policy Under Interest Rate Market Background

Nowadays, banks are facing more volatile and competitive environment, since great changes have taken place in the macro and micro environment of financial industry. In this environment, operation and management of the financial industry is facing more and more challenges, the mercerization of interest rate will have a significant impact on the operation and management of the banks. With the mercerization of interest rate gradually thorough, frequent fluctuations in interest rates will cause a certain degree of influence on commercial bank’s income. Therefore, in the interest rate market situation, commercial banks in China need to strengthen the strategy of pricing interest rate response, so as to effectively avoid risks and seize the market opportunities, improve the market competitiveness of commercial banks and risk response ability.According to the China Merchants Bank Kunming branch of the research object, through a comprehensive analysis of its inner and outer environment, found that the risk of potential opportunities or existence and define the advantages and disadvantages of the bank’s own. The bank fixed deposit income, floating rate income and financial products yields comparative analysis, proof of loan floating interest rates bring earnings for the main part of bank income, interest rate marketization is not completely opportunity instead of a threat. On the basis of the analysis of China Merchants Bank’s inner and outer environment,this paper learns from the successful operation of domestic and foreign bank case, selects China Merchants Bank loan interest rate pricing mode and strategy, and conducts a detailed analysis of various strategies,and puts forward measures for the implementation of the pricing strategy.