Study On The Loan Pricing Of Commercial Banks Under The Interest Rate Market

Since the reform and opening-up,China has always adhered to the basic orientation of the market. However, in the process of liberalization of interest rate, due to the deposit and loan interest rate has been controlled for a long time, commercial banks have the limited abilities of independent pricing. In terms of loan interest rates, the commercial banks in our country still implement the semi-control interest rate policy that releases the loan interest rate cap and restrains the lower.There is no strictly a benchmark interest rate, so commercial banks still face the difficulty to establish a scientific and reasonable system of loan pricing.Based on theoretical analysis and empirical research, This paper is aimed at choosing the most suitable loan pricing model to fit for the business management level through the analysis of the interest rate liberalization of impact on the profitability and credit risk of commercial banks.Focusing on the A bank Suzhou Branch,the paper gives the description of the current loan interest rate pricing model and the analysis of the pros and cons of the pricing model. On the basis of the overall consideration of the factors,such as its own level of assets and liabilities, risk control, cost of capital, competition and customer maintenance,This paper proposes the improvement scheme to improve the bank bargaining ability, profit ability, risk control ability.At the same time, with the deepening of the process of interest rate liberalization and the change of the financial environment, the model of the loan interest rate pricing of commercial banks in our country is inevitably improving.