Research On Personal Loan Interest Rate Pricing Of Chongqing Rural Commercial Bank Under The Condition Of Interest Rate Marketization

With the advancement of interest rate marketization in China, the commercial banks face increasing competition, especially for Chongqing Rural Commercial Bank (CRCB), which is in the transition. In the great potential field of personal loan, commercial banks, aiming to innovate in business varieties and enhance the level of risk management and profitability, have launched unremitting explorations. Under the condition of interest rate marketization, scientific pricing of personal loan, which can control risk effectively, raise revenue and expand market share, becomes the key problem. That is what will be studied in this paper.At first, this article affirms the significance of research on personal loan pricing and then discusses the related contents of loan pricing on the basis of the theoretical level. Besides, it reviews the development and related researches about the personal loan pricing at home and abroad.Secondly, the article analyzes the current situation of personal loan pricing in Chongqing Rural Commercial Bank. On the basis of the analysis, the article also explores the factors affecting its personal loan pricing and the main problems of the pricing.In addition, based on the analysis of CRCB’s personal loan pricing and the advanced methods of foreign commercial banks’personal loan pricing, the article puts forward the principles and the method of personal loan pricing in CRCB-combining the Cost Plus Pricing Model with the Price Leader Model. That is to say, first of all, according to CRCB’s financial statement, analyze the related costs of personal loan and get the basic rate; then, in the light of the historical data, analyze the main indicators of risk to reach appropriate risk coefficient; at last, based on the market competition faced by CRCB and customers’feedbacks, adjust the interest rate. For this pricing method, the article has taken the empirical analysis on the basis of the actual cases of CRCB. Finally, the article gives the suggestions on how to perfect personal loan pricing.