The Analysis The Influence Of Bank-enterprise Relationship To The Loan Pricing Of Commercial Bank

With the continuous marketization progress of the interest rate and gradual opening of the domestic financial market, China’s commercial banks will obtain greater autonomy in deposit and loan pricing. However, due to the credit market in China has been under the control for a long time before, China’s commercial banks have little autonomy in deposit and loan pricing, according, marketization progress of the interest rate in commercial banks is both an opportunity and a challenge. As the competition between Banks in the credit market in China is growing, commercial banks need to improve their deposit and loan pricing efficiently, in addition to constantly adjusting their business structure and strengthening financial service innovation, in order to maintain their customer base and market share and become more competitive in the credit markets.At first, this paper analyzes the current situation of the credit markets in China, and then the shortage of Chinese commercial banks in terms of loan pricing were gained by comparing the advanced Western loan pricing model, which indicates that if commercial banks want to maintain better quality customer resources, there must be a difference for various companies and bank-enterprise relationship is the most important factor to consider commercial banks differential pricing. In this paper, a large number of different enterprises loan data were collected and multiple linear regression model was set up so as to examine the correlation between bank-enterprise relationship and commercial bank loan pricing, and empirical results demonstrate that the depth and size in bank-enterprise relationship should be considered as a factor in the pricing of bank and the duration between bank-enterprise relationship and loan pricing and has no significant correlation. According to the empirical results, a few bank loan pricing model suggestions were proposed for current commercial banks, and some views such as how to deal with the relationship between banks and companies were put forward.As this paper has said, under the background of interest rate marketization, the bank-enterprise relationship should be even more important influence on commercial banks loan pricing. Commercial banks must take advantage of the opportunity of interest rate liberalization, constantly improving their own loan pricing model, making more competitive price, to ensure that the commercial banks’ market share.This paper has been divided into six chapters. It is the introduction of theory from the first to forth chapter, this part is mainly includes literature review, the current situation of the credit markets in China and the comparing the advanced Western loan pricing model. The fifth chapter is the empirical analysis about the influence of bank-enterprise relationship for loan pricing. The last chapter is a summary which gives effective suggestions for commercial banks and enterprises.