Commercial Bank Interest Rate Risk Management

China's liberalization reform of interest rates has been carried out since the beginning of 1990s.Since 1996, interest rate, which was used by the central bank of china as lever to adjust and control the economy, fluctuates so frequently. With the more and more frequent adjustments, Interest Rate Risk (IRR) of the commercial banks is getting more and more serious. Uncertainty of net interest income will do harm to the benefit of commercial banks of china. More seriously, due to the historical reason, IRR management is always neglected by the commercial banks of china, which makes most of the commercial banks almost have no idea of interest rate risks. Measuring and managing techniques on IRR are poor and laggard. Therefore, studies and analysis of IRR, improving the level of IRR management become the most important and urgent tasks confronted with the commercial banks. Under such background, this thesis not only comprehensively introduced the most advanced IRR management methods and tactics in the western world, but also thoroughly discussed the interest rate risk happens to our commercial bank at present using positive research, taking SPDB for example. At last, I give some suggestions about how to improve our commercial banks' level of interest rate risk management. It is of great importance to the commercial banks.There are four parts in this thesis. The first chapter gives the definition of interest rate liberalization; analyze the process of our country's interest rate liberalization. And then analyze the effect of interest rate liberalization on commercial bank. The second chapter defines the interest rate and sorts, conclude the emergence and development of interest rate risk management, at last, systemically analyze two method for measuring interest rate risk-gap and duration. I also do some positive research on SPDC. The third chapter analyzes two strategies about management of interest rate risk. The fourth chapter gives some suggestions of the thesis, including scientifically estimating the variety of interest...