Construction Bank For International Settlements (bis) Product Pricing Research

With gradually narrowing in terms of difference of interests between deposit and loan , commercial banks' profits from traditional businesses are becoming less and less. After China joined WTO, many foreign banks swarm into china , which make all commercial banks put their emphasis on the scramble of intermediate businesses which have rich profits, in order to get much space for development. On October l,2003,the provisional managerial method on service prices of commercial banks was launched, which brought the development opportunity for commercial banks' intermediate businesses ,at the same time it also made commercial banks face much huge challenge. Products are the bases on which bank lives, and products' prices are expression of bank's vitality. So the problem of products pricing will have an direct impact on its survival and development in the future. Therefore ,facing the advantage of scientific pricing mechanism for products from foreign banks, the pricing work has become urgent. National commercial bank will not able to realize the stable and sustained development unless the pricing problem is solved.The thesis just goes along with this highlight problem ,and picks international settlement as a point of intermediate businesses ,takes international settlement products of China Construction Bank (CCB)as an example to studying the pricing method .At the first, the thesis explains the profound things in a simple way from the characteristics of international settlement products to the problem of pricing for international settlement products of CCB . Then ,the thesis summarizes and compares the advantages and disadvantages of the traditional pricing methods in the relevant areas used in domestic and abroad banks ,and analyzes the reason of forming and maladies of current pricing method in CCB. As a result, the thesis puts forward the rules which should be followed when pricing for international settlement products under current environment in CCB. This thesis is along the thought that pricing for products is mainly decided by cost, customer and competence. Firstly, using activity-based-costing analyzes in detail the way of reducing cost which is the main internal influential element. Secondly, the thesis combines the current reality of CCB to objectively analyses the main external influential elements-customer andcompetitive situation. And finally, a new model of pricing for international settlement products is set up ,namely, dynamic adventure and contribution pricing model which is also provide a set of solve method for other intermediate businesses in national commercial banks.