Research On Pricing Mechanism Of Loan Interest Rate In Rural Credit Cooperatives

Loan pricing rate is the core question in the operating management of banking institutions, and as the main force of the rural financial services, the level of loan pricing of the rural cooperative financial institutions largely determines the intensity of the role it has played in supporting develop the’issues of agriculture, farmer and rural area’. Current loaning pricing mechanism of the rural cooperative financial in our country is single and extensive, loaning pricing rate levels are generally high. Therefore, the research on its loaning pricing rate mechanism, analyzing the influence and determinants of loaning rate, thus to improve and optimize the pricing mechanism is a very urgent topic.This paper mainly absorbed the theories and methods of commercial bank’s loaning pricing, elaborating the situation of loaning pricing of the rural cooperative financial through document analysis, study on the problems in the aspect of loaning pricing in the rural cooperative institutions, and based on that, in the rural credit cooperative as an example, adopt the method of combination in qualitative and quantitative, from fund supply, fund demand and external environment these three aspect and two angles of microscopic and macroscopic, through the way of building models and regression analysis on its result, got the decision and the factors that affect cooperative institution’s loan pricing, and accordingly targeted put forward improvement proposal on the aspects of improve rural cooperative institutions’management strategy and consummate rural cooperative institutions’loan pricing mechanism.The principal conclusions of this paper’s analysis are as follows:first the rural cooperative institution’s loan pricing mechanism is more backward, and existing some problems such as generally higher loan rate, imperfect pricing system, single and extensive pricing mode and so on. The rural cooperative institution must increase the degree of attention to rate management, strengthen the construction of pricing system, improve internal management level, by means of market segment to carry on refined and differentiated pricing. Second the influenced factors of loan pricing include the follows:fund cost, loan service fee and target profit which are fund supply factors, fund demanders categories, scale of demanders and demand time limit which are fund demand factors and the degree of credit market competition,rural credit ecological environment, rate of benchmark interest rate and so on which are external factors, all these factors must consider comprehensive in loan pricing. Third fund cost rate and business expense rate are the main factors in determine rural cooperative institution’s loan pricing, currently they must transform management conception comprehensively, centralize resource,allocate and utilize it effectively, decrease fund cost via scientific planning, accounting operational expenses meticulously to realize intensity management, carrying out intermediate business products innovation actively to broaden fund channel, strive to maximize fund rewards.