In addition

This method of pricing of bank loans as pricing based on the level of current market rates, suggests the orientation of the bank in the pricing of loan services prices, operating on the market, ie initiative in the pricing owned competitors. Pricing based on the level of current market rates applicable, as a rule, small banks that use the strategy of "imitation of a leader." The leaders are the banks that set minimum prices for their products and provide the maximum amount of services provided. Method of pricing based on customer relationship provides good relations with customers has always been regarded by banks as a necessary condition to ensure normal operations. Depending on these conditions can be formed and the pricing strategy of the bank, takes into account the interests of the most promising clients. Method of pricing to market penetration used by the bank in the event that the bank deliberately lowers the price of credit services to gain some market share. Competitors, as a rule, do not maintain price pressure, which leads to loss of their activity, and the bank, which carries a price maneuver, gradually reducing their spending and winning a fair share of the market can begin to implement policies aimed at improving their profitability. Category: Management Operations Commercial Bank