Study On Automobile Credit Interest Rate Risk Of Commercial Bank

Interest rate fluctuations become frequent as the interest rate reform advances, which led risks that commercial banks faced creasing. Meanwhile, with economic growth and rise of citizen consumption ability, personal automobile consumption credit business grows significantly and car loans take creasing proportion of bank loans. Therefore, it becomes so important for commercial banks to control auto loans risk that interest rate risk management is called for to enhance risk prevention capability and meet the need of business development.This paper takes the main varieties of auto loans in china commercial bank as a starting point. First, analyze the different risks consequences that interest rates changes bring to fixed rate and floating rate auto credit. In the following days, China will enter a channel of higher interest rate, and auto loans will face a situation with particular risk. Secondly, make use of gap analysis to measure the interest rate risk with interest rate sensitivity gap model and the duration model, make detailed analysis to the impact of variables on duration model, and then based on the duration model point out risk management strategies of commercial bank auto loan. Thirdly, analyze the necessity to the accuracy improvement of gap models and the more advanced risk measurement models to help measure the loan inner options implied risk.In order to cope with interest rate risk, this paper puts forward several recommendations and countermeasures. In the aspect of business operation, commercial banks need to develop new varieties of auto loan to satisfy the risk management when interest rate fluctuates and to realize the diversification of operating income. It proposes that Commercial banks make use of their resource advantages to enhance cooperation with other institutions, promote product innovation and marketing efforts, and continuously expand areas of service. In the aspect of inner option risk control, strengthen risk management of advanced payments and risk of refused to payments. In the aspect of interest rate risk control strategy, combine the balance sheet position adjustment with balance sheet interest rate derivative hedging to initiatively adjust the gap strategy, as well as adopt floating rate pricing strategy and borrow long-term funds strategy to make reasonable use of the financial interest rate derivatives tools.