Pricing Strategy Of Commercial Bank Loans For Small And Micro Businesses Under The Marketization Of Interest Rate

In recent years, the promotion of Marketization of Interest rate is significantly accelerated. After October 2015, the rate control in our country has been substantially loosed, making the marketization of interest rate stepped into a new stage, and both loan and deposit rate have been almost reformed into marketization. Today, in China, the credit market of small and micro businesses is huge, but their developments are still suffering a shortage of funds. And also, the financing difficulty of small and micro enterprises has not been effectively resolved. As the main fund suppliers of financing of small and micro enterprises, under the background of marketization of interest rate, in order to improve their own comprehensive competitiveness and efficiently provide financial supports to small and micro enterprises, commercial banks badly need to change the way of thinking and to establish and perfect scientific pricing systems of loan.This article deeply analyses the status quo and problems of loan pricing of commercial banks in China, illustrates some relevant domestic and foreign theories of loan pricing, introduces some frequently-used loan pricing methods by commercial banks, and then applies the comparative analysis method to explain a proper loan pricing method for small and micro businesses. Based on the domestic and foreign pricing models, combined with the practices of loan pricing for small and micro businesses, the pricing model of this article is determined. In addition, this pricing model is amended according to some pricing cases of commercial banks, and some effective case analysis is also represented. Finally, combined with the characteristics of small and micro business financing and the background of marketization of interest rate, some proposals of pricing strategy for small and micro business customers are offered: establishing and perfecting the pricing system, organizing and optimizing the internal pricing negotiation mechanism, establishing a performance-linked loan pricing system, optimizing the approval mechanism of authorisation of interest rate, implementing differential pricing strategies. These proposed pricing strategies have a significant reference value for the loan pricing of small and micro enterprise of commercial banks under background ofmarketization of interest rate.