Research On The Loan Pricing Model And Strategy Of Qingdao Bank Dezhou Branch

With the central bank liberalized lending rates of financial institutions regulation on July 20,2013,the process of China's interest rate marketization gradually accelerated.Accompanied by the rapid development of internet finance and private banking,China's commercial banks will face increasingly competitive "Red Sea”.In the face of complex domestic and international financial environment and competition,commercial banks must ensure the rationality of loan prices on the scientific loan pricing mechanism,which not only affects the Banks' profitability and their competitive advantage in a large extent,but also largely determines whether the commercial banks can meet the customers' demands and ultimately achieve the perfect unity of safety,effectiveness and the liquidity.However,the long controls on interest rates in China lead to commercial Banks in subjective lack of deep research for its management of loan pricing model of motivation.Therefore,domestic accumulation in loan pricing data model or application experience is very scarce.The loan pricing is based on the traditional model of the central bank's benchmark interest rate.In recent years,some domestic commercial Banks on the basis of the research of the Basel agreement drawing lessons from the western theory of loan pricing,have made some beneficial exploration and try in the loan pricing,Whereas,due to the lack of accumulation of data model,technical support,theoretical research and the lack of full consideration to cover the costs,risks,efficiency,competition and the customer's diversity,China's loan pricing method is still to be further improved.Therefore,in the market for interest rates,commercial Banks need to estimate reasonable loan prices by selecting authoritative and appropriate pricing models which can not only fully reflect the capital cost,risk cost,management cost,keep the profit level,but also provide differentiated services according to the contribution of different customers.After studying both the domestic and foreign loan pricing theory and the relevant application literature,this paper finds that the RAROC model,which is widely used in international finance,has more advantages and greater development potential.Based on the actual situation of Qingdao Bank Dezhou Branch,this paper chooses RAROC pricing model as the main analytical framework to deepen the analysis and research of loan pricing of Qingdao Bank Dezhou Branch under the condition of interest rate marketization from the principle of "three character” balance and benefit maximizing.The research in this paper is divided into six parts.The first part is the background,meaning,the research status and the research content;The second part is the theoretical basis to modify of the loan pricing model of Qingdao Bank Dezhou Branch;The third part is the present situation and existing problems of the loan pricing of Qingdao Bank Dezhou Branch which provide the direction of the loan pricing improvement model;The fourth part is the construction and application of the loan pricing model of Qingdao Bank Dezhou Branch and the operation of the revised pricing model;The fifth part is the pricing strategy and evaluation of Qingdao Bank Dezhou Branch;The sixth part is the conclusion and prospect of the enterprise.