Research On Interest Rate Liberallization And Commercial Bank's Credit Risk Management Of Our Country

The major resource of bank's profit is margin between deposit and loan rate in our country. As the commercial bank's traditional service, the loans born with credit risks because of which principal and interest possibly cannot call in. How to manage credit risks is a key problem which commercial bank must face continuously in our country. At present commercial banks manage credit risk mainly by evaluating enterprise credit rank to establishes credit admittance standard and separating the loan operation to reduce operation risk. The interest rate liberallization will change the type of credit risk. Besides the traditional risk of credit and operation, the interest rate risk prominently reveals. The marketable interest rate not only brings market risk but also affects the.credit risk and operation risk. It is advantageous to defence credit risk, but test on the bank operation risk's management level. After interest rate liberallization, The commercial bank may independently determine loan price according to the loan fund cost and all kinds of credit risk. How to reasonably valuate for load becomes an essential question to control credit risk. But the commercial banks have not established load pricing system and do not have skill to formulate loan price in our country. Many overseas commercial banks already formed complete theory system and technical method relating to interest rate risk management. It provides advanced risk-metric technology in order to adapt interest rate liberallization and to perfect credit risk management system for our bank. In the recent two years, the advance of interest rate liberallization marches into substantive stage in our country, The inelasticity of the credit risk management system appears day by day. The commercial bank need to consummate its credit risk management system if it want to be in an impregnable position in the advancement of interest rate liberallization. This article proposed firstly our country interest rate liberallization reform entered the substantive stage, then researched the influence of interest rate liberallization to the commercial bank and the credit risk administration, analyzed how to adapt the interest rate liberallization reform on own initiative from commercial bank's angle and proposed the specific measures, to establish science formulating loan price mechanism and strengthen the interest rate risk guard function in the credit risk management system.