Interest Rate Risk Management In Commercial Bill Market

Commercial bill market, as one of the short time capital financing markets, joins central bank and enterprises. It possesses crucial position in the money market, and plays more and more important role in a country's economic development. The bill market of our country starts from 1980's. Reviewing the develop course of China's bill market, though it is just more than 20 years, it has gotten rapid development. It has facilitated the purchase and sale for Chinese enterprises in a large scale, offered a new mobility management place for commercial banks, and created an effective carrier for central bank to implement currency policy. Along with the continuous further development of the bill market and the interest rate market forming process, it is notable that there will be more interest rate risk in the bill market. As a result, how to measure and guard against the interest rate risk becomes an important subject put in front of us.From the view of commercial banks, one of the important participators in the commercial bill market, this dissertation tries to analyze the factors affects interest rate and study how to measure and manage the interest rate risk in the bill market.Firstly, the article is to explain the related concepts, such as commercial paper, the behavior of bill, bill market, interest rate risk and the risk management and so on. The writer clarifies the reason why to select interest rate risk management as its subject, as well as the structure, the innovation and the shortages of this article.Secondly, it introduces the coming into being of the interest rate risk in bill market. It classifies various kinds of risk in bill market, and emphases the risk of interest rate. After introducing the produce of the general interest rate risk relating to commercial banks, according to the characteristic of bill market, the writer analyses the uniqueness of the interest rate risk of bill market in detail.Thirdly, it pays attention to the necessary of enhance the interest rate risk management in the bill market. Because of the bill market's significant role in the entire financial market, the thesis briefly introduces the classification of the bill market and the current condition of our bill market. It is imperative to strengthen the interest rate risk management in the bill market.Fourthly, it explains the risk management theory of the interest rate in the bill market. The dissertation introduces the related mature theories and their models about measuring interest rate of commercial banks and gives the example using Var model.When the risk can be measured, it comes to the control and the management of it. As usual, the writer introduces the related theory and method on risk management, and connected with the characteristic traits of the bill market, discusses the measure and the management of interest rate risk management in the bill market.Last but not lest, the writer puts forward some suggestions on how to improve the management of interest rate risk in the bill market.