Research On Pricing Of Personal Business Loan Of Lu'an Rural Commercial Bank Based On Interest Rate Liberalization

In August 2019,the People's Bank of China announced the reform and improvement of the loan market quoted rate formation mechanism,which is an important step towards the realization of a dual-track interest rate merger.The marketization of interest rates has entered a new stage,which has promoted China's economic development.However,the narrowing of interest spreads and increased competition pressures have caused commercial banks not only to focus on expanding new businesses,transformation and upgrading;they also need to internally adjust loan pricing structures,which is scientific and reasonable Pricing.In China's open market environment,individual industrial and commercial households and small and micro business owners engaged in commercial business services have become the target groups for major commercial banks.Especially after being affected by the new coronary pneumonia epidemic this year,such groups need a large amount of capital turnover to resume production.Compared with large state-owned and joint-stock banks,local rural commercial banks have weak pricing technology and lack of knowledge reserves of credit personnel,which has led to the lag in loan pricing management.Therefore,studying the pricing of personal business loans based on the background of interest rate liberalization can effectively avoid the adverse effects of interest rate liberalization and enable the steady development of local rural commercial banks.This paper sorts out relevant literatures on interest rate marketization and loan pricing at home and abroad through literature review.First,based on the knowledge of theory such as Financial development theory,the interest rate theory of loanable funds,Marx's interest rate determinism,and so on,summarize China's interest rate marketization development framework,the influencing factors of personal operating loan pricing,and analyze the impact of China's interest rate liberalization on local rural commercial bank personal operating loan pricing.Then,based on multiple loan pricing models such as cost plus method,price leadership method,and customer profitability method,the current status of personal business loan pricing of Lu'an Rural Commercial Bank is analyzed,and the pricing characteristics and problems are studied.Subsequently,the cost-plus method and the customer profit method were used to optimize the pricing of the bank's personal operating loans.Finally,using the 50 individual business loan data of Wangchenggang Sub-branch of the bank as a sample,the optimized model is tested,and the impact on loan pricing is further analyzed according to the contribution of different customers.The study found that the pricing model combining the cost-plus method and the customer profit method will reduce the pricing level as the customer contribution increases,effectively distinguishing high-quality customers.Therefore,Lu'an Rural Commercial Bank should turn to endogenous growth that emphasizes customer loyalty and focus on increasing intermediate business income to reduce loan pricing and increase its pricing power.The research contribution of this paper is to put the perspective into the loan pricing management of local rural commercial banks,and analyze the impact of marketization of interest rates on local rural commercial banks' personal operating loan pricing from multiple perspectives.Based on the theoretical accumulation and the bank's actual situation,analyze the bank's personal business loan pricing issues.Optimize the pricing problem and examine the impact of the combination of the cost-plus method and the customer profit method on the bank's pricing model.The research results provide a thinking perspective for the bank's personal business loan pricing as well as suggestions and empirical evidence for the market-oriented transformation of interest rates.