Loan Pricing Of The Chinese Commercial Bank Based On Credit Risk

Under the background that China has gradually grown into market-based interest rate deeply, and commercial bank shave accustomed to execute long-term interest rate policy of central bank regulation, so commercial banks confront new problems and challenges that how to identify and assess the risks of different loan customers, and quantify the risks and the pricing reasonably.Because commercial banks loan scale expands continuously in China, and the credit risk has increased accordingly. As credit risk is one of the main risks faced by commercial banks, so this thesis focuses on the credit risk of commercial bank loan pricing problem from the perspective of credit risk management.Based on the analysis of the current status of commercial bank credit risk management and loan pricing, the present author points out to adopt RAROC loan pricing methods. Because the loan data is core data for commercial banks, so this thesis takes10 enterprise loan as a sample from one commercial bank and conduct sample analysis and comparison with the actual lending rates in 2015.The result showed that RAROC loan pricing model can help commercial banks manage their risk better. At last, the present author presents some suggestions to make the RAROC loan pricing model better applied in Chinese commercial banks.