Studies On Loan Pricing Mechanism Of State-owned Commercial Banks

In2004Chinese banking institutions began to implement market-oriented interest rate reform under the guidance of the People’s Bank (Central Bank of China), which gave birth to the development of bank loans theory and practice. The credit business is the core business of commercial banks, and loan pricing is the key link of the credit business. The state-owned commercial banks are the main body of China’s financial system, leading financial institutions, and has an important impact on the change of China’s financial market. Therefore, the research of loan pricing mechanism of state-owned commercial bank has an important practical significance.Being that the China’s credit markets is in the state of interest rate controls in long-term, and the lending rate is stipulated to uniform provisions by head office, the loan pricing power of state-owned commercial bank is still in a difficult predicament, after lending rates is float, not suited to the development of modern financial market. Based on the analysis of the state-owned commercial bank loan pricing mechanism, the study sums up the factors affecting the loan pricing performance, and builds a regression analysis model of state-owned commercial bank loan pricing, and certifies the theory model and provides a reliable theoretical reference for state-owned commercial banks to improve loan pricing strategy.The innovative results of this study includes following three aspects:(1) Construction of state-owned commercial bank loan pricing performance influencing factors model. This study selects customer credit evaluation, credit funds supervision, cultivating the interest rate manager, estimating loans cost, customer market positioning, the credit data integration, information system optimization and macroeconomic policies identification as the impact factors of state-owned commercial banks loan pricing, so as to build the loan pricing performance model of state-owned commercial banks.(2) Using multiple regression analysis to test the effectiveness of the state-owned commercial bank loan pricing factors, thereby discovering realistic and functional differences of loan pricing factors for loan pricing performance in both overall and individual commercial banks.Firstly, regarding as loan pricing performance of overall state-owned commercial banks, such factors as customer credit assessment and macroeconomic policy recognition take a great role, such factors as interest rate management staff training, estimating loan cost and information system optimization take a general role, and such factors as credit funds supervision, customer market positioning, and credit data integration do not produce an effective role.Secondly, for the loan pricing performance improvement of Industrial and Commercial Bank of China, such factors as customer credit assessment and interest rate staff training take a great role, such factors as credit fund supervision, loans cost estimating, information system optimization and macroeconomic policies identification take a general role, and such factors as customer market positioning and credit data integration do not produce an effective role.Thirdly, for the performance improvement of the Construction Bank, interest rate staff cultivating takes a great role, and such factors as customer credit estimation, customer market positioning, credit data integration and macroeconomic policies identification takes a general role, and credit funds supervision, loans cost estimating and information system optimization do not produce an effective role.Fourthly, for the performance improvement of the Agricultural Bank, such factors as information system optimization and macroeconomic policies identification take a great role, such factors as customer credit assessment, credit fund supervision and loan costs estimating take a general role, and such factors as interest rate manager training, customer market positioning and credit data integration do not produce an effective role.Fifthly, for the performance improvement of the Bank of China, such factors as customer credit assessment and macroeconomic policies recognition takes a great role, such factors as interest rate management staff cultivating and information system optimization take a general role, and the such factors as credit funds supervision, loan cost estimating, customer market positioning and credit data integration do not produce an effective role.(3) Based on the test result of the theoretical model and loan pricing realistic practice of state-owned commercial bank, providing the personalized loan pricing improvement strategy in both overall and individual commercial banks.Firstly, for the overall state-owned commercial banks, to maintain the advantage of customer credit assessment and macroeconomic policy identification, cultivate the function of interest rate management staff training, loan cost estimating and information system optimization, mining the potential of credit funds supervision, clients market positioning and credit data integration.Secondly, for the Industrial and Commercial Bank, to maintain the advantage of customer credit assessment and interest rate management staff training, cultivate the function of credit funds supervision, loan cost estimating, information system optimization and macroeconomic policies identification, mining the potential of customer market positioning and credit data integration.Thirdly, for the Construction Bank, to keep the advantage of interest rate staff cultivating, improve the function of customer credit assessment, customer market positioning, credit data integration and macro-policy identification, mining the potential of credit funds supervision and information system optimization.Fourthly, for the Agricultural Bank, to keep the advantage of macro-policy identification and information system optimization, and cultivate the function of customer credit assessment, credit funds supervision and estimating loan cost, and mining the potential of interest rate staff training, customer market positioning and credit data integration.Fifthly, for the Bank of China, to keep the advantage of customer market positioning and macro-policy identification, improve the function interest rate management staff training and information system optimization, mining the potential of credit funds supervision, loan cost estimating, customer market positioning and credit data integration.