Analysis On Loan Pricing Ability Of China Merchants Bank Under LPR Mechanism

Loan pricing is an important decision for commercial banks.Whether or not they have reasonable loan pricing capabilities is a problem for many banks.Too high a loan interest rate will cause customers to seek loans from other banks,resulting in the loss of high-quality customer resources,and the bank will suffer losses;if the price is too low,the bank's asset side will face greater challenges.With the deepening of LPR(loan market quoted interest rate)reforms,the competition between banks is becoming increasingly fierce,which is a major test for the loan pricing ability of commercial banks.With the implementation of the Basel Capital Accord in China and the continuous advancement of the interest rate marketization process under the LPR mechanism,China's interest rate marketization process is accelerating.China's commercial banks have begun to actively introduce and explore loan pricing methods,but compared with large international commercial banks,there is still a certain gap in the loan pricing capabilities of China's commercial banks.As one of the LPR quotation banks,China Merchants Bank is more important in scientific and reasonable loan pricing.The asset quality of China Merchants Bank is relatively high and the scale of credit assets is showing a steady growth trend,with a high non-performing loan ratio.Although the provision coverage remains at a stable level,the ability to compensate for risk losses still needs to be strengthened,and scientific and reasonable loan pricing capabilities are essential.This article takes China Merchants Bank as the research object and explores the loan pricing model of the entire commercial bank.In this context,this article selects the loan data of 30 listed companies of China Merchants Bank in 2019 as a sample,calculates the loan interest rate of the sample enterprise based on the RAROC loanpricing model,and compares the interest rate level obtained by the model with the actual loan interest rate.The average level of the bank 's actual loan interest rate is lower than that of the RAROC model loan pricing,and there is a certain degree of loan price risk.Based on a comprehensive analysis of the cost and profit structure,combined with customer relations and market factors,China Merchants Bank should formulate a more scientific and objective Loan pricing.In order to improve the rationality and accuracy of the pricing method,the basic model is revised from the perspective of credit risk and customers based on the RAROC loan pricing model.This model provides a new idea for China 's commercial bank loan pricing,which makes the loan pricing model of China's commercial banks more extensive and practical.Finally,this paper combined with the results of the model analysis,put forward countermeasures and suggestions to improve the loan pricing ability of China Merchants Bank,and put forward suggestions to improve the economic capital management system of commercial banks: through the cultivation of micro-building mechanism,they should establish a four-in-one loan interest rate pricing management system,improve the organizational structure and system,improve the technology of economic capital management,as well as strengthen data accumulation and information system construction,improve the understanding of the marketization of loan interest rates,find the correct positioning and establish a risk compensation mechanism,and propose measures to strengthen the cultivation of high-quality talents..