Analysis Of Profit Rate Of Commercial Bank Loan Pricing Target Based On BP Neural Network

With the interest rate market and the implementation of Basel III,China's financial market environment has become more complex,the loan interest rate market after China's central bank to the commercial bank completely cancel the loan interest rate,loan interest rate will be based on the capital market supply and demand fluctuation,commercial banks are independent pricing according to the specific characteristics of the customers.The long-term implementation of the central bank's benchmark interest rate policy of commercial banks,the traditional loan pricing method is no longer applicable.Under the fierce market competition,the choice of a suitable loan pricing method for commercial banks is an urgent problem to be solved.Cost plus pricing model is a widely used model in commercial banks.It fully considers three aspects: cost,profit and risk.It can solve the problem of interest pricing in China's bank loans.But in terms of expected target profit measurement,it is very difficult.Banks have been subjectively estimating and assigning the target profit rate.Even some banks have ignored the target profits,so that the risk of bank loans increases and the stability of loan income is difficult to guarantee.How to objectively estimate and assign customers' expected profits based on the results of the free competition of the market,through effective methods,according to the customer's attribute characteristics and financial market factors,so as to reduce risks and ensure the stability of loan income is an urgent problem to solve.This paper proposes the use of BP neural network on loan free competition in the market after the data results of data fitting analysis,can be based on customer size,location,purchase product features such as data and other market factors objectively on target profit rate objective measure.It solves the difficult problem of target profit rate measurement,and makes up for the shortcomings of the cost plus pricing model in the practical aspect of loan pricing,making the application of cost plus model more comprehensive and feasible.And according to the problems encountered in the process of research,we propose to continue to improve the cost measure,risk measure and profit measure mechanism.The first chapter describes the background and significance of the topic selection,introduces the development trend of the theory of loan pricing,and illustrates the research contents,methods and innovations of this paper.In the second chapter mainly introduces the implementation of interest rate liberalization,analyzes its influence on the domestic commercial bank loan pricing,and select an appropriate loan pricing model of commercial banks in China are key to solve the problem of independent pricing ability,risk management ability is weak and difficult to grasp the problem of financial market operation rules etc..The third chapter describes the cost plus loan pricing model can well solve the problems of loan pricing in our commercial banks,and the content,principle and advantages and disadvantages are summarized,briefly introduces the measuring principle of various factors in the model,analyzes the importance and difficulties of objective measure the expected target profit rate and the selection of BP neural network model to measure the target rate of profit.The fourth chapter first analyzes the characteristics of data selected in this paper,then briefly summarizes the BP neural network model,and analyzes the applicability of BP neural network to the expected target profit rate of this paper from a theoretical point of view,based on its advantages in data fitting.The fifth chapter is the focus of this paper,on the basis of the above,BP neural network model has been constructed for the measurement of target profit rate,the historical data of the selected analysis results show that by using the BP neural network feature information and market factors of enterprises is expected to target the profit rate of the objective prediction,and the results of the actual data error of commercial banks has great reference value in the loan business.And suggestions are made according to the analysis.Finally,in the sixth chapter,we make a summary and prospect.