Conduct of pricing policy on the market

Implementation of pricing in the market of credit services include the selection of the bank for a specific tool in accordance with the pricing of services. The tools pricing of credit operations are: the dismemberment of the price, price differentiation, counterbalancing pricing. Dismemberment prices should be used in the following cases: if there is difficulty to determine the cost of the bank to raise funds and place them where necessary price adjustment due to discounts to customers. Differentiation of the price of credit services is carried out according to: the risks of operations; term implementation of the agreement between bank and customer, the borrower's creditworthiness and its ability to generate constant cash flow, the nature of the relationship between bank and client. Balancing pricing includes pricing for credit services, on the grounds that the loss of income for this service will be compensated in the future or at the expense of other banking products. According to the strategy and tactics, the bank may hold the pricing on the credit operations of such methods, "the average cost + profit", based on the tangible value of the product, based on the level of current market rates, based on relationships with customers, in order to penetrate the market, the price model leadership, establishing interest rates on loans below the prime rate, the establishment rate of the loan on a "cost-utility." The method according to the method of pricing, "the average cost + profit" is based on the calculation of prices by determining the costs of providing credit services and certain allowances as income of the bank. Category: Management Operations Commercial Bank | Tags: politics