Early Repayment Of The Pros And Cons Of Random Interest Rates

The random interest is one of the kernel content of finance reformation in our country. Since joined the WTO, the finance market in our country is more open. Under the random interest, studying about the management of owes for commercial bank and elusion of finance risk seems more important. Establishing reasonable credit policy and getting more benefit under less risk will have great significance for improving the prosecution benefit and international power competition of commercial bank in our country.Since May 2003, eight banks adopted compensation policy in some proportion for giving back loan forward in Shanghai. It arose abroad dispute. We can make ascertain that it is reasonable or not by studying the problem of giving back loan forward. If it's reasonable, we can determine the proper proportion of compensation. Also for client, this problem can make them sure about the proper time of giving back loan forward.Using the theory of finance mathematic and under the situation of random interest, in this paper, we discuss the proceeds or loss of loaner for giving back loan forward, and the risk of it. By the way, we analyze the compensation of giving back loan forward.