The Pitfalls of Commercial Loan Pricing: What Bankers Need To Know, And Avoid Commercial Loan Pricing Believe it or not, there are a lot of pitfalls in commercial loan pricing, and in this blog, we're going to discuss them, and how you can avoid them. Many banks today use a spread-based pricing model instead of a risk-adjusted return on capital (RAROC) model. Approximately 15% of banks who have under $1 billion in assets use either an in-house or a purchased loan pricing model, and of t...