Analysis Of Small And Medium-sized Commercial Bank In China Based On The Interest Rate Market Interest Rate Risk Management Is Discussed

As the national economic and financial reform going further, the pace of the reform gradually accelerates quickly.Under the condition of interest rate marketization, the large variability and uncertainty of the interest rate impacts the main market inevitably. As the financial market microstructure, the commercial banks are directly faced with the challenge of interest rate marketization. Interest rate risk has an impact on operating income and net market value of commercial banks, especially on small and medium commercial banks(SMEs). Whether the SMEs can manage their interest rate risk as well as to complete the overall bank risk management and narrow the gap between foreign banks as well as state-owned commercial banks, becomes the focus attention of the theory community and the banking community. Therefore, it is necessary to have a system research and exploration of interest rate risk management which China's SMEs face.This paper firstly summarizes the domestic and foreign research results of the bank risk management in the process of interest rate marketization of commercial banks, which lay a theoretical foundation for the study. Secondly, it analyzes the development and interest rate risk of the SMEs in interest rate marketization theoretically and empirically, and reveals the shortcomings and problems according to the status quo of interest rate risk management in China's SMEs.Later, based on learning the experience of the international commercial bank risk management, it discusses the interest rate risk identification and the choice of the table-balance-sheet interest rate risk management tools in interest rate marketization. Finally, it proposes suggestions and measures to strengthen the interest rate risk management of the small and medium commercial banks.Studies have shown that in the process of interest rate marketization China's SMEs face worsening interest rate risk, don't have strong ability to withstand risks and the interest rate risk management situation is not optimistic. The balance-sheet interest rate risk management tools which the small and medium commercial banks can use include:(1) Take the interest rate sensitivity gap analysis model to analyze interest rate risk situation.(2) Make "customer pricing model" as a small and medium commercial bank deposit pricing model.(3) Make EVA-based "customer profitability analysis model" as a loan pricing model.(4) Implement relationship-based loan for SMEs.(5) Choose balance-sheet financial derivatives tools.