Study On Interest Rate Risk Management In China's Commercial Bank

With the deepening of our economic system reform and financial system reform, interestrate marketization has been pushed gradually. After interest rate marketization, volatility anduncertainty of interest rate will seriously affect earning of China's commercial bank. Thus,interest rate risk will become the major risk in China's commercial bank. But due to thelong-exercised interest rate control, China's commercial bank has not paid enough attention tointerest rate risk and also has not corresponding method and instruments to manage interestrate risk. How to manage interest rate risk effectively will become an important problem forthe management of commercial bank. So, based on the deep research on the advanced interestrate risk management technologies and methods of the western advanced country and try torefer to and use them with the combination with the practice of the native commercial banksand improve the ability of the China's commercial banks to resist the interest rate risk is theaim of the paper.The paper is divided into four charpters in construction. Charpter 1 Introduce theinevitability of the interest rate marketization, through the analyses of the interest ratemarketization theory and the interest rate risk management theory. Charpter 2 describes theprinciple and practical application of interest forecasting technique, interest risk measuringtechnique and interest risk management technique systematically, finally it comments on theadvantage and disadvantage of those techniques in application. Charpter 3 analyzes thepresent situation of the interest rate risk management of with practical new data . Point out themain problem .In Charpter 4 the paper gives some suggestions on how to construct interestrate risk management system of China's commercial bank.