Engineering
8 years ago

Chinese Banks Revolutionize Loan Pricing, Boosting Profit and Reducing Risks

湘潭大学学报(哲学社会科学版)
The Design of Domestic Commercial Bank on Loan-Pricing Models
Xie Luo-qi

Paper Summary

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Domestic commercial banks in China can now set their own loan prices since the top limit on loan rates for enterprises was removed in 2004. To ensure profitability and manage risks, banks need to develop new loan-pricing models based on Western theories. By setting appropriate loan prices, banks can determine the creditworthiness of different businesses and control loan risks effectively.