Research Of SP Bank Funds Transfering Pricing System

With the unceasing deepening of Chinese interest rate marketization, Chinesecommercial Banks are facing serious competition and challenges. This pressure isnot only from increased external competition, but also from the demand of theinternal management improvement. In this context, shortcomings of the originalinternal capital balance management mechanism of SP bank are more and moreobvious, and this mechanism can not adapt to the overall level of assets andliabilities management needs. Since the second half of2008, SP Bank internal fundshave been committed to new construction and improvement of management system.In this paper, concept, content, structure and mode of commercial bank internalfunds transfer pricing system are firstly elaborated, comparing pricing models andpricing methods used in the development of Western Commercial Bank internalfunds transfer pricing system. Secondly the current implementation of the SP bankinternal capital valuation management system is introduced, including the basicmode, processes, pricing, main steps. Finally, combining internal funds transferpricing theory with Chinese actual interest rate marketization progress, from threeaspects of the price curve construction of internal funds, pricing options and pricingadjustments, current full amount pricing mode of the SP bank is optimized, andspecific support measures are described.