Study On Constructing Internal Fund Transfer Pricing System In Countryside Commercial Bank

In recent years, central bank has expedited the marketization reform of progressive interest rate. It is a challenge for management concept of commercial banks, puts extra pressure on their margin and requires them to increase products pricing capacity. Internal fund transfer pricing, a basic condition for exact pricing of external products, is the most effect way to combine product pricing, resource allocation and performance assessment. It is an important factor and control method to resource allocation of commercial banks and plays a significant role in increasing management level of commercial banks and improving their market competitiveness.The commercial banks at home and abroad all tend to take constructing fund pricing system as basis, mitigate risk of interest rate though internal and external pricing of finance product and regard fund pricing system as a platform for performance management, resource allocation, product pricing and risk management. As a new kind of joint-stock bank in China, countryside commercial bank should soon change its traditional extensive management mode to refined management mode and constructing fund pricing system is extremely crucial in the process.Constructing fund pricing system in TaiXing Rural Commercial Bank (TXRCB) mainly researches the organization frame and products structure in TCCB. Establish a virtual capital pool and divide business into minimum pricing account. Each account has its own reasonable internal fund price which is linked with market fund price. Through reasonable fund transfer pricing, internal fund price will fluctuate with market price and peel off interest risk from operating institution to make sure that interest fluctuation has no impact on operating institutions’ profit. The key of system construction study is curve study on all the product fund transfer pricing. Through subdividing the range of fund transfer pricing and account, determine the mode of fund transfer pricing and establish internal fund transfer pricing system with fund transfer pricing curve as core, so as to lay the foundation for cost apportionment and performance analysis.