The Loan Pricing Research Of Commercial Bank Of China Based On The Background Of Interest Rate Liberalization

Interest rate liberalization is an important part of China’s market economy, the inter-bank lending market in1996as the beginning of liberalization, until now the China’smoney market interest rates, the bond market interest rates have been achieved market,The lending rates (except for individual housing loans) have been fully liberalized, only thedeposit interest rate cap still in control. The fully interest rate liberalization is approaching.Interest rate liberalization testing the ability of independent pricing while brings greaterautonomy of commercial banks. However, due to the control of the deposit and lendingrates have been long time, the banks lack of enthusiasm and motivation to study the loanpricing, the method of loan pricing are too traditional; something challenge thecommercial banks,such as the decline of interest revenue, customer have more choices andincrease the ability of bargaining. The problem that how to improve the ability of loanpricing of commercial banks is becoming more important and urgent. This paper reviewsthe process of interest rate liberalization in China, analyze its impact on the cost, incomeand profit of commercial banks in China, in particular the process of the deposits and loans,analysis its impact on China’s commercial banks of assets, liabilities, profits.Comparingthe advantages and disadvantages of traditional loan pricing model.Point that theimportance and urgency to study the loan pricing in China; compared the advantages anddisadvantages of the conventional loan pricing model;consider that the future direction ofloan pricing is include the customer relationships and risk-adjusted. Finally, use themethod of factor analysis, a model that constructed for Chinese commercial bank, drawingthe Option pricing model and RAROC model, and simulate its application, and proposedsome problems that have to improve constantly.