A Study On Loan Pricing Of City Commercial Banks Under LPR Mechanism

How to price the loan reasonably has been a problem for commercial banks for a long time.Overpricing of loans will drive customers to engage in high-risk economic activities to cope with the relatively heavy debt burden brought by loans,or inhibit customers’ demand for loans and make them turn to other banks for loans or directly raise funds through the open market.If the loan is priced too low,the bank’s profit target will not be met,and it will not even compensate the bank for its costs and risks.With the in-depth reform of LPR(loan market quoted interest rate),the competition in the loan market is becoming increasingly fierce.It is more important for banks to price loans scientifically than before.With the acceleration of China’s interest rate liberalization reform process,China has increased the strength of the original LPR reform,forming the current loan market quoted interest rate.China’s commercial banks have begun to actively introduce and explore reasonable loan pricing methods,but compared with international commercial banks,there is still a certain gap in the loan pricing ability of China’s commercial banks,especially compared with small city commercial banks,the loan pricing ability is weaker.In recent years,the rapid rise of many city commercial banks has become an indispensable part of China’s commercial banks,improving the city commercial banks themselves existing loan pricing problem is very important.In this paper,the city commercial Banks as the research object,explores our country city commercial bank loan pricing model,this paper summarize the study of loan pricing problem at home and abroad,introduced the commercial bank involved in the loan pricing principles and theoretical basis of currently used mainly in the commercial bank loan pricing method are introduced and comb,Together with the present situation of city commercial Banks operating in China,this paper expounds the problems of loan pricing,at present our country city firms select 25 in the city of actual loan business of commercial bank loan customer specific amount,deadline,etc.,using RAROC loan pricing model of the data in the accounting,the model calculates that interest rates compared to actual loan interest rates,The empirical results are obtained and analyzed.Finally,on the basis of the empirical analysis results,combined with the operation model of urban commercial banks and the existing problems in the loan pricing,this paper draws a conclusion: China’s urban commercial banks lack a reasonable pricing mechanism;The risk cost of loan pricing of urban commercial banks in China is high.The division of loan pricing decisions of urban commercial banks in China is unreasonable.Relevant policy suggestions are put forward: to build a four-in-one loan interest rate pricing management system;Further improve the measurement of credit risk;Raise awareness of interest rate liberalization;We will increase the cultivation and reserve of high-quality personnel.