The Research On The Interest Rate Risk Management Of Commercial Bank Of China

It has been over ten years along with officially launching the market-oriented interest rate reform since 1993 in China. In the process of this reform, the international financial liberalization and economic globalization has accelerated the development of China's market-oriented interest rate reform, now in the final stage of deepening. As China's market-oriented interest rate reform deepening, China's financial market fluctuations and the frequency in interest rates increased volatility. The interest rate risk of China's commercial banks in aggregate, forms and contents has undergone great changes, which has become one of the main risks of China's commercial banks .And the interest rate risk management will become prominent task of China's commercial banks risk management. According to our nation's long-standing official rate control system, which causes the awareness of interest rate risk management of China's commercial banks is still very weak, and the technical measures of interest rate risk management is relatively backward, lack of advanced management experience. China's commercial banks have gained great achievement in interest rate risk management in the process of the market-oriented interest rate reform, but on the whole, is still very fragile. The problem of the institution system and the technical measures for interest rate risk management still exists. Therefore, this paper is to study the modern advanced interest rate risk management theory, technical measures and management experience of western commercial banks based on analyzing of the causes, types and interest rate risk management status quo of China's commercial banks. This paper primarily addressed two aspects from the technical means and policy recommendations to strengthen effective rate risk management measures in our commercial banks. Our commercial banks can use specific technical means, policy instruments and establishing bank internal mechanisms to strengthen interest rate risk management. The technical measures include product pricing strategies, the gap model, option-adjusted spread (OAS) Model, VaR model and derivative financial instruments; And major policy proposals include establishing favorable macroeconomic environment and improving commercial bank's internal control system.