Study On Interest Risk Management Tacticsof Chinese Commercial Banks

As the deepening of China's economic reform and financial system reform, interest rate market-oriented reform has been pushed step by step, but in condition of market interest rates, the interest rate level showed greater variability and uncertainty and interest rate risk will become Chinese Commercial Bank's main risk. How to manage interest rate risk effectively will become important difficulty for Commercial Bank. The article based on the deep study of the advanced technology and methods of Western developed countries'interest rate risk management , take efforts to connect with Chinese Commercial Bank'reality and put it into practice ,in the hope of raising our Chinese commercial banks ability to withstand risks.The first part elaborated the theoretical basis and reality of the market-oriented reform of interest rates, and Chinese market-oriented interest rate reform process. McKinnon and Xiao's theory explained why interest rate caused the low economic efficiency . The second part explained the measurement and classification of the interest rate risk of Commercial Bank and made assessment for its advantages and disadvantages. According to the cause of interest rate risk, the Basel Committee "Interest Rate Risk Management Principle" puts the bank interest rate risk into four types: re-pricing risks,risks included the right to choose, the basic point risks and yield curve risks. The measurement of Commercial bank interest rate risk mainly through the interest rate sensitivity gap's analysis and evaluation; duration gap analysis and evaluation simulation analysis and evaluation; China need to learn from the advanced analytical methods of western commercial banks in the aspect of interest rates balance. The third part analyses the interest risk management status of our Commercial Bank by employing the latest data,and points out its existing problems and analyses the causes. The fourth part combines our interest risk actual situation,which learned from the west Commercial Back's management tecnologyes and bring up the corresponding strages aiming at solving our interest risk management problems.Recently the Commercial Bank should set up the interest risk strages which made sensitive gap management as the main ways.In the middle time ,it should be accommodate the steps of interest marketlization with the Commercial Back's supervise institute to improve the risk management's outer conditions,to adjust the business innavation and product developing ability. On the basis of that ,it could try to set the west developed country's advanced interest govern ways of Commercial Bank as a example to deploy the modernlized interest management fully and fixes the interest deprived tools against interest risk as the long-going stragey.Besides,it should also construct and perfect Commercial Bank's interest governing system.