The Research Of Commercial Bank’s Loan Interest Rates Pricing Under The Background Of Interest Rates Marketization

With the development of progress of the interest rates marketization, China’s market-based reform of interest rates has made great progress, and it has reached a critical stage that the deposit and loan rates were marketized completely, which put forward the higher request for the capability of interest rates pricing and risk management for commercial banks.This article studies the choice mechanism of loan rate pricing model of domestic commercial bank in the full consideration of the interest rates marketization. On the basis of the research of process, influences and the commercial banks’ measures to deal with interest rates marketization, it compares the four main methods of loan pricing those are Cost-plus loan pricing, Customer Profitability Analysis, RAROC pricing and Price leadership method, and analysis whether they follow the principle of loan pricing under the condition of marketization of the interest rates. Then the article chooses the price leadership method as the most appropriate loan pricing in China and makes improvements which proper base rates were selected, the relationship between banks and lenders were considered and internal rating was applied.