China's Commercial Bank Loan Pricing Studies

Interest rate marketization has already become the irreversible developing direction in the reform of financial industry in China. The era in which the government set a unified price for all the businesses of commercial banks in the traditional planned economic system will die away forever. Since October 29,2004, the People's Bank of China would no longer establish the upper limit of the loan interest rate for commercial banks, which has already had greater freedom in the right of lending pricing. However, how should commercial banks in China, still familiar to the price regulation of the government for a long time, face the new problem of loan self-pricing in the process of the reform of the interest rate system? Proceeding with the concept of commercial bank loans pricing, the first part of this paper recommends several pricing modes from foreign commercial banks, which are relatively mature and represent the pricing ideas from various angles respectively. This paper draws quintessence from it, summarizing and summing up several basic principles that should be followed while paying lending pricing. The second part of this paper reviews the historical changes of loans pricing of commercial banks in our country, analyses its current situation and finds that there are certain distances from the scientific and systematic pricing practice and sorts of drawbacks still exist both in the microcosmic and macroscopic aspects. Following the basic principle of commercial bank loans pricing, the third part of this paper tries to combine the practical method of disruptive pricing of commercial bank loans in China, steady and sure start from the detailed discussion of relative papers and monographs at home and abroad, and set up a set of scientific, complete and of operative new-type lending pricing systems. Finally, the fourth part of the thesis explained the necessity of setting up the authorized lending pricing management system step by step, and in this authorized management system, it explained, regarding the computer network procedure as the means, the feasibility of the pricing system set up in this paper.The main characteristics of this paper about lending pricing of commercial banks of our country are: on the basis of fully understanding the lending pricing mode theories of foreign banks, not confined to the superficial forms of any mode, it pays attention to the drawing of their quintessence, and builds up a set of intact new-type pricing systems; it puts forward that the commercial banks should set up a corresponding lending pricing management system, meanwhile utilize the relevant parameters of pricing models mentioned to realize the gradual mandate of lending pricing; "loaning for depositing" is ubiquitous in China's commercial banks, aiming to that phenomenon, the concept of fixing a price in disguised form of providing a loan as well as the analyzing method is put forward; to fix a price in providing a loan according to the actual market conditions, three "manufacturing price" of economic sense in loan is introduced. In the model for fixing a price in this article, the engrossed cost of capital is well combined with the objective profits; and it brings forward CAPM to calculate anticipated returns of the capital of the listed banks' shareholders, and so on.