The Loan Interest Rate Of Western Mining Group Finance Co.,LTD. Is Based On The Application Of Cost-plus Pricing Method

2017,the essential year for China to implement the "13th Five-Year Plan",is the year for deepening the supply-side structural reforms as well as the thirtieth anniversary of the founding of Finance Enterprise Group Corporation.In 2016,the finance firm served more than 70,000 entities with 1.54 trillion yuan loans contributed,which contributed 160.6 billion yuan to reduce costs and increase profits for the real economy.By the end of 2016,the total assets of the financial company were 7.50 trillion yuan,including the inside and outside industry table and 236 financial companies had been opened.While the rapid development of the industry,there is a widespread phenomenon of extensive operation and existing a big gap between refined management and commercial banks.In the field of loan pricing,financial corporations use a extensive method that the base rate plus a point,which tracking pricing strategy can not reflect the characteristics of financial companies or conduct their own comparative advantages.With the release of the floating ceiling of the legal interest rate of loans,the future guidance of the statutory base rate will be gradually weaker.Therefore,the introduction of a more scientific method of independent pricing is the inevitable trend of the future development of the industry.This paper studies the loan interest rate application for the western mining group finance company,applying the cost-plus pricing method.Based on reviewing a number of literature about the application of cost plus pricing law and financial company loan pricing studies,this paper first clears the significance and innovation and combines the related research results.Then,by introducing the actual case of Western Mining Group Company,this paper enables to understand its practice of the loan pricing methods and existing problems.After that,some suggestions will be put forward,which may solve the pricing method problems.The application analysis for measuring loan interest rates via cost-plus pricing method will be stated in the end of this paper.At present,there are few studies on the independent pricing issues for financial companies in our country.With the market-driven interest rates developing gradually,finance companies have realized the urgency and necessity of improving the loan pricing method in recent years.Therefore,it may be deemed that the theme of this thesis is somewhat innovative.In 2016,which is the year of achieving supply-side structural reforms,the year of politics named “capacity reduction,de-stocking,de-leveraging,cost reduction and improving underdeveloped areas” realizing the initial success,and the year of state-owned enterprises reform implementation,itwill make strongly practical sense for financial corporations to find an approach to optimize the loan pricing mechanism further making the finance in a better use.According to some case studies,the paper points out a solution that it could apply the cost plus pricing method to improve the pricing mechanism of the loan interest rate,supplemented by other safeguards.Furthermore,the component,the measurement and the application of the loan cost have been elaborated.In the end,the differentiated loan price can be determined.Last but not least,other safeguards mainly discuss how to strengthen the aspects of risk management,performance appraisal and budget management so that the overall management level of financial companies is enhanced.