Research On Optimization Of Loan PricingMethod For SMEs

For commercial banks,the loan business is still the main source of income,which is also the basis for the survival of commercial banks and the economic and social security.For urban commercial banks,the development of credit business for technology-based SMEs is not only conducive to alleviating the financing difficulties of SMEs,but also to promoting the growth of high-tech enterprises,which is more conducive to avoiding homogenization competition with other banks and creating new point of profit growth.In the context of interest rate liberalization and increasingly fierce market competition,the rationality of loan pricing is particularly important,which is related to the bank's profitability.Therefore,how to carry out accurate risk measurement,construct a suitable loan pricing model and reasonable pricing of loans have become an important issue for commercial banks.This paper studies the current situation of Bank A Technology Branch in order to improve the rationality of its loan pricing,which is certain practically significant.Firstly,the paper introduces the status of Bank A Technology Branch loan pricing from three aspects: the development of technology branches,the introduction of loan pricing system and the existing defects.It shows that Bank A Technology Branch still used the relatively backward cost-plus pricing method,which does not meet the current marketization process of interest rates.Then,the RAROC loan pricing model is selected by comparing several loan pricing models.The traditional RAROC model is improved by incorporating the loan risk compensation mechanism and the customer's comprehensive contribution.Then,by manually collecting more than 200 credit information,the binary logistic model is used to find out the key factors affecting the default probability of SMEs.The paper finds that the rate of default probability is significantly proportional to the size of the firm,significantly inversely proportional to the asset-liability ratio and significantly related to manufacturing.The optimized RAROC loan pricing model is used to re-calculate the loan business.The comparison finds that the current loan price of Bank A Technology Branch is too low,which cannot reflect the credit risk well.Combining the case to find that the bank's profit target is not under the premise of change.The improved RAROC model is more sensitive to risk and can reduce the rate of non-performing assets.Finally,combined with the above proposes strategic recommendations for the loan pricing of Bank A Technology Branch.