The Application And Risk-warding Measures Of The FRA In The Rate Risk Management Of China's Commercial Bank

Along with the reform of the interest rate marketization will be accelerated progressively, it brings more interest rate rights to independence for the Commercial bank, at the same time it also hide greater risks, the interest rate change uncertainty aggravating, the interest risk is gradually becoming the main risk which the Commercial bank faces, interest rate risk management and prevention become the important topic which the Commercial bank studies. Because at present financial derivative market is not developed in our country, the interest rate risk control is mainly manages by in the traditional table, but this method will lag far behind our country's financial industry is speeding up opening up and the reform of the interest rate marketization. Since the 1970s the interest rate derivation has developed which happen to made up the aboveflaw, one of the most basic interest rate derivations——forward interestrate agreement adapts our country's national condition, obtains the majority bank favors by its unique superiority. In this paper, through analysis Chinese commercial banks utilize forward rate agreements to carry out the business to prove forward rate agreements plays an important role at commercial banks interest rate risk management, we should develop the forward rate agreements vigorously, control the huge interest risk which the interest rate change brings, adapt our country interest rates marketization reform advancement, it is worth our attention that the forward rate agreement has a great deal of development value, but it just likes the double-edged sword, while dodge and transfer risk has also had the new financial risk. The Commercial bank should pay attention to the forward interest rate agreement risk during utilization the guard. Must strengthen the interest risk consciousness, from the management mechanism, the fixed price, the talented person and so on strengthen the utilization of the forward interest rate agreement management interest risk variously. At the same time, from the macroscopic aspect, develop the financial derivation market vigorously, speed up the interest rates liberalization reform process, promote the formation of the benchmark interest rate system, forward rate agreements in order to perfect the pricing mechanism. Through both macro-and micro-level two-pronged approach to promote commercial bank use forward interest rate agreement to manage interest risk effectively .