Studies Of China's Regional Small Bank Loan Interest Rate Pricing

After the outbreak of the international financial crisis since 2008,China's financial circles on the depth of thinkingcombined with the practice of the situation at home and abroad and the previous experience. Whit the arrival of the 12th five-year plan,China's banking reform will deepen further,also including interest rate magnetization.Bank interest rates on bank capital pricing level plays an important role in resource allocation.As an important force of China's financial circles,regional bank institutions of small and medium-sized demand imperatively to improvement of their own management and financial product pricing levels.But in fact,small and medium-sized regional bank institutions facing many problems,such as governance structure, personnel quality, management area profit,space management level,and so on.Take rural credit cooperative as an example,for historical reasons,it has unique characteristics.In policy,it services countryside,agriculture and farmers,also small and medium-sized enterprises,the business services regional is fixed;In mode,it operates flexible to prove small short-term loans,but also face problems of higher costs and single products;In history, it high approved by the people of its business area, but problems of high proportion of bad loans,the narrow business scopes,and low degree of customer choose are serious day after day;In management and technology, it develops later,and has a big gap compared with big banks. In this background,this paper discusses the Pricing System in small and medium-sized banks.In the interest rate marketization situation,how to reasonable pricing for loan products is a bending problem for bank management.If the loan pricing too high, it will restrain loan request of high quality customers,and force them to turn to other financing channels,which lead customs to bear high economy risks and heavy debt burden. If the loan pricing too low,the bank can not to pay the compensation cost and risk-taking,unable to realize profits targets.Loan market competition becomes increasingly fierce,subdividing client group and guiding for business development by high quality products become the main marking pattern, loan products pricing scientific is more important than even before. Because of the scale and level of management limited,the level of small and medium-sized banks pricing must be boost.In this paper,we discuss loan pricing theory model and the current situation of pricing system,and elect a small and medium-sized regional bank for case analysis. Through to the loan pricing combine with the current situation of small and medium-sized regional bank to study the process flow of pricing system,then establishing a comprehensive loan pricing mode combined with bank management cost,target profit and credit risk.Through empirical analysis,we use credit rationing theory and simulation method to inspect the effect between related factors and loan pricing,and improve the countermeasures of product pricing mechanism.Finally, building a more reasonable pricing model to service the daily pricing services,also highlight the management level and service level of small and medium-sized banks.