The Research On Interest Rate Risk Management Of China's Commercial Banks

The development of China's market economy requires the development of financial market. The interest rate is the price of capital. It should reflect the status quo of the demand and supply of capital in the market. So the liberalization of interest rate is a tendency. Because the interest rate has been under control for a long time, China's commercial banks have many problems on the management of the interest rate risk. It is an urgent task for us to improve the level of the management of interest rate risk and to enhance the ability to reduce the whole risk.First, this article introduces the management of interest rate risk generally. Through analysis of the experience of the quantitative methods and tools used by commercial banks in western countries, this article summarizes the route of development of interest rate risk management. And this article gives the proper tools and methods which are suitable to China's commercial banks. Then this article points out the main interest rate risks encountered by China's commercial banks, and puts forward some measures to solve the problems. Finally, this article points out the characteristics and existing problems in interest rate risk management and recommends solutions, including establishing a complete management system of interest rate information, improving the ability of pricing which meets the requirements of interest rate liberalization , etc.