A Study On Corporate Loan Pricing Of Commercial Banks In China Based On EVA

For many years,the loan interest rate of commercial banks in China has been under the control of the People's Bank of China.There is little room for commercial banks to independently price their loans,and a lack of foundation for loan pricing,and also a lack of systematic and in-depth study on loan pricing.With the transformation of commercial banks from planned system to market system and the promotion of marketization of RMB interest rate,the competition among banks has become increasingly fierce.On the one hand,the space of deposit-loan spreads is shrinking,on the other hand,the adjustment frequency and intensity of the People's Bank of China to the benchmark interest rate are increasing.In this environment,it is particularly important for commercial banks to maintain or even expand the profit space by improving the loan pricing ability.In addition,with the development of management concepts for modern commercial banks,the consideration of bank profits has changed from simple concern about net income to concern about the real economic added value after eliminating a series of operating costs,such as capital cost,risk cost and operation cost.Therefore,how to further enhance the ability of capital operation and risk control of commercial banks,how to set a more reasonable loan price,and how to balance asset returns and risks,which also puts forward higher requirements for the loan pricing ability of commercial banks.At present,the pricing of corporate loan interest rate of most commercial banks in China is controlled by the head office.Under the authorization of the head office's loan interest rate,the floating range and lower limit management are implemented on the basis of the benchmark loan interest rate of the same period published by the People's Bank of China according to the enterprise scale,credit grade,loan term and guarantee conditions of the loan customers.Although this pricing method has made some progress,it still lacks scientific rationality and has subjective factors.Without a scientific loan pricing method,commercial banks still can not get rid of the pricing model under interest rate control,which is extremely unfavorable to the healthy and rapid development of the banking industry.Based on the basic theory,this paper studies the loan pricing model of commercial banks from the perspective of EVA(Economic Value Added),puts forward some suggestions for improvement,and combines with the example of loan pricing sample of Bank A X Branch,compares the actual pricing with the pre-adjustment and post-adjustment pricing value calculated by the pricing model,studies its similarity,and then analyses the existence of the bank in loan pricing.Problems and suggestions for improvement are put forward.