China's Commercial Banks To Interest Rate Risk Assessment Methods To Explore The Process Of Marketization Of Interest Rates

2006, after China's WTO entry to the protection of domestic banks last year, as well as China's interest rate marketization reform key year. With the gradual opening up of financial markets and interest rate marketization come full our banking market environment will be further improved, and it also implies that increased competition and market risks increase.In this context, the author attempts to adopt market-oriented reform of China's interest rate review, to analyse China's commercial banks` capacity of interest rate risk management. By learning the relevant experience from the Western Bank, the author want to explored our bank interest rate risk assessment methodology chosen. Finally, the authors draw a conclusion about the feasibility of gap analysis and duration analysis. In accordance with this line of thinking, this article is divided into three parts dealing with.In the first part of the article, the author discusses the meaning and relationships of interest rate marketization and interest rate risks. Also, the author recalled our interest rate marketization process, and make an analysis of current interest rate environment characteristics, point out that the interest rate risk faced by commercial banks have changed a lot.In second chapter, the authors introduced two parts of the international interest rate risk measurement experience. First is the Western countries history of interest rate risk measurement. Second is the development of two major interest rate risk assessment methods. In section three of this chapter, the author adopt to the gap analysis, 1995-2004, 10 years of 10 commercial bank interest rate sensitivity ratio calculation, give analysis of commercial banks` IRR assessment capabilities in the 10 years of market-oriented reforms, the level of...