Small Business Loan Pricing Based On RAROC Model

With the progress and development of China’s market economy, small and medium-sized enterprises in the process of economic development often can produce very strong power and market, in the development process of small and medium-sized enterprises financing problems has been very prominent, and has been more and more the attention of experts and scholars, as the national policy guidance, the bank is exploring for more small and medium-sized enterprise loan service business, how to scientific safe and effective for small and medium enterprises on the loan has become the bank is very concerned about a problem. And also become a financial institutions need to face and solve the problems in the process.Through some lending for foreign theory and pricing theory research, and refer to the related literature review to get the dog found, the RAROC model has been widely recognized in the financial sector, and has been widely used, the model itself is a kind of carrier of the science, in the process of using tends to play a role of a very large, and along with the continuous deepening of the reform of China’s financial market, China will gradually increase associated with RAROC model research, and it is also the article will choose this topic to discuss.This paper according to the model as the main quantitative model, and also give consideration to yield factors related to the customer in the process of loan pricing strategy for research. First loan pricing method of China has a long history, and its also has certain problem, these problems seriously affect the development of China’s financial markets, through RAROC.This pricing model for small and medium-sized enterprise loan problems are studied, and the combination of theory and model, thus it is concluded that no matter what type of loans, including loans and default normal loans, RAROC loan pricing model can effectively predict. The use of this model has certain help for China’s current loan system, and also can from several aspects, such as market changes, lending rate for the current model is appropriate. Finally the article from the perspective of combination of internal and external environment put forward the corresponding solving RAROC real application suggestion in China.