Research On The Tactics Of Controlling Interest Rate Risk For Chinese Commercial Banks

In the past few years the procedure of interest rate liberalization was accelerating so that a completely liberalized financial environment was coming to us.Interest-rate liberalization will not only bring opportunties to us,but also bring interest-rate risk to our commeucial banks,which having experienced rigorous restriction of interest-rate from central bank for a long time,knew little about the management of interest-rate risk,let alone the experence of controlling it.The dissertation start from an analysis of connotations and measurements of the interest-rate risk,from which three tactics of controlling interest-rate risk were drawnrtechnical tactics,managing tactics and commercial tactics.Technical tactics is tools and methods to control interest rate risk,including In-Balance-Sheet method and Off-Balance-Sheet method. Managing tactics pay attention to how to organize and implement the risk controlling for a commercial bank.Both technical tactics and managing tactics are based themselves on traditional business which make profit from interest spread betreen loans and deposits, commercial tactics however is a reflection and innovation on traditional business in order to meet the requirement of interest-rate liberalizaion.All of the three tactics are connected with each othenthe technical tactics is a hardware of controlling the interest-rate risk,and the managing tactics is a software of applicating the technical tactics,and the commercial tactics is a summarization and innovation of the technical and managing tactics.Implementation of the three tactics will challenge our commercial banks to improve their management; therefore interest-rate risk may be an opportunity to our commercial banks. Just as credit risk has made our commercial bank tougher, interest-rate risk also will bring a new revolution to our commercial banks. Moreover implementation of the three tactics need accomplishment of the financial supervising agency,so in the end of the dissertion some pieces of advice were suggested to our financial supervising agency in order to facilitate the financial environment and stablize the economy.