Research & Couter Measures And Suggestions On Loan Pricing For Rural Credit Union In Jiangxi Province

The commercial banks and other financial enterprises have launched unprecedented revolution during the passed years. For JiangXi rural credit union, the floating space for loan rate has been constantly enlarged, as a result, it has become a key step to set price for loaning. It is urgent to construct the scientific and objective pattern for loaning. In doing so, it would enable JiangXi rural credit union to keep revolution pace with its counterparts in developed regions, and it would also optimize the distribution of agricultural resources so as to provide rural development in JiangXi province with better service.This paper firstly illustrates the theory concerning loaning rate and the decisive factors. It also analyses three price-setting patterns abroad and patterns based on them, namely, the RAROC setting pattern, the pattern based on Z-Score and Zeta and, the one on the basis of option。Secondly, this paper clarifies the establishment, development and current status of JiangXi rural credit union, and explores the inner causes leading to the current status, realizing the subjective effects on loaning pricing, hence the decision to apply the BP, an objective reverse calculating pattern, to evaluate the risk involving loaning pricing. It then introduces in details the BP covering its theory, steps and the possibility for risk levels. Furthermore, it applies to the practical process covering different kinds of customers. Finally, this paper suggests JiangXi rural credit union improve its loaning pricing policy in terms of outer macro-factors as well as its inner system.