Bank Of China Interest Rate Risk Management Research

The management of interest rate risk is very important to each commercial bank. As to bank of china, it has the same importance, Because the change of interest rate will affect its net interest income and market value of owner's equity. There are many problems in the practices of the management of BOC, so it is necessary to research how to improve its management.The purpose of this article is to explore some excellent methods to solve these specific problems which exist in the management of interest rate risk of BOC.The article analyses the current situation of the management of BOC, and seeks its weak points, then advances the tactics of improving the management of interest rate risk of BOC.The main ideas of the article are as follows. First, BOC should use the experiences of foreign bank for reference to managing its interest rate risk. Second, Furthermore, BOC should formulate relevant tactics and methods on the basis of its particular situation. For example, BOC should perfect its mechanism of the management of interest rate risk, and orientate its goal at stabilizing net interest income, and so on.I expect that above-mentioned ideas and methods will produce positive influence to the management of interest rate risk of BOC.