Importance The research examines basic aspects and technology for managing risk-based pricing (RBP), using the case study of the Russian banks. The research refers to methodological approaches, theoretical principles and practical basis for managing risk-based pricing as a necessary condition to optimize the risk-return ratio as part of the lending process that pursues stable liquidity and efficiency of the bank's operations. Objectives The research identifies the main aspects for improving the lending process, using the cases of the Russian banks. We review tasks and objectives of RBP, techniques for setting up the interest rate, approaches to improving the methods, possibility and prospects of its use by banks, related economic and social effects that significantly stimulate the economic activity. Methods The research uses proceedings by national scholars in economics, regulatory documents, official sources, expert reports, data of credit institutions, statistical data. The key concept of the research is based on the examination of factors and conditions that ensure a customized approach to measuring the loan value using the borrower's estimate. Results We reveal theoretical principles of managing the interest rate, and review its correlation with social significance of the banking sector as part of the Russian economy. We also investigate tools for generating the technology under study, application of RBP technology in the Russian banks, and present comparative description of the conventional pricing approach and RBP. The article articulates prospects and capabilities of using the RBP approach in commercial banks. Conclusions and Relevance The research discovers the nexus of the customized approach implemented in the lending process, and the bank's performance. We demonstrate what opportunities banks acquire by implementing the Risk-Based Pricing technique, and reflect its strengths and advantages as compared with traditional lending. We find out that this method is effective when the bank switches to the lending policies that are compliant with the contemporary economic reality.
Keywords: pricing, interest rate, scoring, scoring system, credit history
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