Bank Account Interest Rate Risk Study To Rural Credit Cooperative Of XX, Sichuan Province

As the basic monetary policy for macro-control, interest rate adjustment is a common tool to adjust economic trend of The central bank. In recent years, China's central bank frequently adjusts the RMB deposit and lending rates. Especially in 2007, the deposit rates were raised for 6 times and the rate of savings deposit reserve fund,10 times. In 2008, China's economy was suffered in the global financial crisis and many policies were implemented to stimulate the economy. The banking profit of 2009 was affected a lot because of a series of rate cuts beginning from September,2008. Some commercial banks whose assets-liabilities structures were not suited to the reduction of interest changing were affected clearly by the interest-rate risk. With the acceleration of the liberalization of interest rate in the future, there is not doubt that the fluctuations of deposit and loan interest rates and market interest rates would be more violent. How do the changes in interest rate affect the profit of commercial banks in the future? This will provide more uncertainty to risk management of interest rate of commercial banks. Therefore, managing and preventing risk of interest rate is certain to become the chief points of bank risk management.In order to manage and supervise the rise of bank Interest rate, In July of 2004, Principles for Interest Rate Risk Management and Supervision was issued by Basle Committee. It provides instructions for commercial banks to manage interest rate of bank accounts. In December of 2009, Instructions for Bank Account Interest Rate Risk Management of Commercial Bank was issued by China Banking Regulatory Commission. It explicitly demands that commercial banks should establish system of bank account interest rate risk management. The issue and execution of these documents will definitely promote the development of bank interest rate risk management study.This paper which is based on the Basle New Capital Terms Interest Rate Management Framework, combines the reality of bank account interest rate risk management and supervision of commercial banks of China, and considers the certain condition of rural credit cooperative and writer's working experience, uses Basle Standard Impact Method to imitate the interest rate risk of pure interest income and economic value of rural credit cooperative.Firstly, it analyzes interest rate risk management briefly, which introduces concept, identification, measure and method of analysis of interest rate management; Secondly, it mainly introduces the supervision and management practices of internal and external's interest rate risk, and analyzes the general problems of interest rate risk management of internal commercial banks; Thirdly, it describes overall condition of rural credit cooperative of this area by integrating and summarizing data of all credit cooperative, and then selectively introducing the situation of standard method imitation to enhance the sereneness and sustainability of this paper. Finally, it uses Basle Standard Impact Method to imitate the effect to bank pure interest income and economic value by raising 200 basis points, and analyzes if the savings deposit reserve fund and current account should be included in the interest-earning assets and payment of interest liability.This paper uses the principle of theory combing with actual, it is based on the real date of the region rural credit cooperatives and Basel standard method, simulates the influence of bank net interest income and economic value which is cased by interest.rates rose 200 basis points, through the fixed quantity and qualitative analysis methods,comparison analysis methods,empirical research methods and so on, announces the rise of bank Interest rate. Through the research, we can find that the net interest income of the region rural credit cooperatives faces the risk of the falling interest rates, if we don't deduct the deposit reserve and demand deposits, the simulated results don't conform to the real situation of the region rural credit cooperatives; economic value faces the risk of the rising interest rates, but whether deducts the bank reserve and demand deposits from interest-bearing assets and servicing debt, which cases little influence on the research results of interest rate risk of economic value of Rural credit cooperatives.The principle innovation of this paper is systematically analysis the risk of the interest rates of the net interest income and economic value, and economic value, and analysis whether the net interest income of bank is consistent to change direction of economic value or not while interest rates rises and falls,In conclusion, the bank account interest rate risk of commercial bank has many characters, such as the diversity of risk source, the multiplicity of risk affect, the complexity of risk measurement, and so on. Because of limited time and knowledge, the study of this paper is not well-argued, and needs to be enhanced and improved.