Study On Interest Rate Risk Management Of China's Commercial Bank In The Interest Rate Liberalization Reform

These days, not only Center Bank, but also Commercial Bank in China has paid much attention to financial risk management. But they still focused on credit-loal risk. The interest-rate risk, especially the influence to commercial bank's profit under the changeful interest rate, draws little attention .Thus, how to manage the interest-rate risk of China's commercial bank is a very practical task.This thesis is focused on how to manage the interest-rate risk of China's commercial bank. It analyses the interest-rate risk which the commercial banks have to face in the interest rate liberalization reform. The test analyzes the interest-rate management that our country's commercial banks are facing with academic and practical methods. It still objectively analyses the problems from the interest rate risk management of commercial banks. This thesis also researches the form and the reason of interest-rate risk of China's commercial bank. On the basis of above study, it puts forward some suggestions on how to construct the interest-rate risk management system in China.Chapter one introduces the implementation of interest rate liberalization in our country. First, it states the meaning of interest rate liberalization. Then it takes a review of the interest rate liberalization steps which have been taken and makes an expectation of this reform. Finally, it devotes an analysis to the next steps of interest rate liberalization which should be a gradual process.Chapter two makes an analysis of the risk which the commercial banks have to face in the interest rate liberalization reform. First, it analyses the trend of RMB interest rate and makes a conclusion that at the beginning of interest rate liberalization reform .On the basis, it points out that the interest rate risk which will be raced by commercial banks can be divided into temporary risk and permanent risk. The temporary risk is brought by the change of the central bank's management regime, while the permanent risk rises from the internal interest rate risk management of commercial banks. The permanent risk includes reprising risk, yield curve risk, basis risk and optional risk.The third chapter gives observations on China's interest rate management through applications on the theory of interest rate risk management to commercial banks: analyze the reason of interest rate risk in China's commercial bank and the existing problems during management.The last chapter research how to manage and control the interest-rate risk of China's commercial bank. Finally, some suggestions are discussed in order to help construct the mechanism of interest rate risk management at present stage.