Determinants of Corporate Loan Pricing

This paper investigates the influence of various determinants on the price of a loan for corporate borrowers. Based on empirical data gathered from the form 0409303 “Information on loans to legal entities” received from a bank (which is included in the top 100 banks in Russia in terms of asset size and actively engaged in corporate lending), which dates from January 2017 to January 2021, an empirical regression model was built, in which the interest rate on the loan serves as the dependent variable. The results obtained generally confirm the conclusions of previous studies, and the extensive theoretical background of the study suggests that the conclusions drawn about one particular bank may well be transferrable to the Russian corporate loan market as a whole. The paper narrows a significant gap in the scientific literature regarding this topic in relation to the Russian market. Also, in-depth understanding of the determinants of loan pricing can be useful not only for banks, but also for corporate borrowers, which also appears to be important.