Research On Funds Transfer Pricing Of Lin Shang Bank

With the rapid development of China’s market interest rates, Lin Shangcommercial bank management model also should keep pace with the times andmanagement should thoroughly to improve oneself, in line with internationalstandards. Internal transfer pricing with new ideas, new technology, can help improvethe bank operating profits and management level and centralize the management risk,direct product pricing, effective allocation of resources and scientific performanceevaluation. But because of the influence of the domestic financial environmentlimitations and control of interest rate and other factors, most of the domestic LinShang commercial banks have not established a scientific and rational internal fundstransfer pricing system. Analysis of Western Lin Shang commercial banks to transferpricing evolution model based on the use of Lin Shang commercial bank management,financial management and financial products pricing theory, reveals the connotationof the Lin Shang commercial banks’ internal funds transfer pricing, and Lin Shangcommercial bank internal funds transfer pricing the significance of the pricing rulesand pricing models. As a guide to explore the internal funds transfer pricing model forPro Lin Shang commercial bank and other small and medium banks.Less internal funds transfer pricing implemented for small and medium banks,the paper as a starting point in the domestic and foreign internal funds transfer pricingtheory based on the Lin Shang commercial banks of the domestic part of theimplementation of the internal funds transfer pricing situation to analyze, summarizeits implementation experience and shortcomings, on the basis of analysis in themanagement status quo Pro Lin Shang commercial bank, Pro Bank of Credit andCommerce implementation of internal funds transfer pricing problems faced byDiscussion Based on the above theory, given for Pro and Lin Shang commercial bankof the characteristics of internal funds transfer pricing implementation of the program,provide useful lessons for other small and medium banks. Implementation of the internal funds transfer pricing system, and other relatedsystems supporting the implementation of the implementation, in order to maximizetheir utility. First, through the cost-sharing system, a reasonable apportionment linesand branches operating costs; economic capital management system, an accuratemeasurement of the economic capital; recognize the credit risk, credit riskmanagement system, measuring the cost of credit. Internal funds transfer pricing asthe basis of the bank management accounting, linkage with other related systemscomplement each other, and jointly promote, will promote the silver small andmedium-sized banks balance and meticulous management level improvedsignificantly.