Loan pricing model for SMEs based on credit risk adjustment

Abstract

Through comparatively analyzing the ways adopted by western commercial banks to make a loan price, this article establish a loan pricing model that suitable for SMEs from the standpoint of city small and medium-sized banks, in order to help banks to make better financial services for small and medium-sized enterprises (SMEs). At the same time, the article also adopt one regional commercial bank's data to made empirical test, to explain it is a viable method to use that loan pricing models to solve the problem of the interest changes from the control price into the market price.