Loan Pricing In The Bank Of N In Ningxia

As the 60%revenues of the bank of N in Ningxia comes from the loan,reasonable loan pricing will directly determine the profitability and market competitiveness in this bank.Through the literature research method and empirical analysis method,the paper researches the existing loan pricing system of the bank of N in Ningxia,finds the system has unreasonable risk-pricing trend,lacking in data support in pricing process,has too long pricing process,leads the branches lacking in bargaining power.Based on the part of loan data in 2016 of small and medium sized enterprises,through empirical analysis,the paper get the conclusion of that the overall level of loan pricing in the bank is far too low and the pricing level for different customer in the same risk level spans too large.Based on the analysis of the present situation,the design scheme optimization in the administrative structure of loan pricing mechanism in the bank is proposed,including keeping the rate pricing group,upgrading the level requirements in the leader of pricing group,setting the function of loans pricing monitoring,constructing suitable information system for the management in pricing,relocating the function of pricing management.At the same time,optimal design of pricing management mechanism is proposed,including using Pricing management information system to assist the management and efficient pricing,establishing the loan pricing monitoring and feedback mechanism.According to analysing four general pricing models in the markets,RAROC based loan pricing model is suggested for the bank of N in Ningxia.Finally,the suggestions for promoting the implementation of new loan pricing mechanism is proposed,such as perfecting the law of loan pricing mechanism,strengthenning management,improving technical support from basic information system,training expert professionals in data analyzing and pricing.