Study On Interest Rate Risk Management Of China’s Commercial Bank In The Interest Rate Liberalization Reform

The rapid development of economic globalization makes the financial market hasoccurred enormous changes in recent decades. Although we can use a variety of differentways to explain what happened in the financial markets， but from a certain level， thesechanges occurred in the financial markets can be a concentrated expression of interestrates. Because the interest rate is the price of borrowing transactions， and thereforeinterest rates provide a unique scale or tools to measure the activity of financial market.As the core of the financial industry， commercial banks can most representative of thedevelopment of financial institutions； especially interest rate risk is one of the mostimportant financial risks， which has been widely aroused national monetary authoritiesand economist. Therefore， exploring the changes in interest rates has importanttheoretical and practical significance to the impact of commercial banks， especially inthe process of marketization of interest rates in China.In this paper， we discuss China’s commercial banks interest rate risk managementin the trend of the market. By anglicizing the changes in interest rates on economicactivity， the corresponding interest rate transmission mechanism， the reference interestrates in developed countries the process of marketization and China’s interest ratemarketization to study the interest rate risk situation and the existing problems in China.Especially in combination with Chinese commercial bank capital structure to study theprofitability performance under interest rate liberalization. Finally， through theintroduction of commercial bank interest rate risk management of traditional and modernmethods， using financial engineering thought to establish a European call option onforeign exchange model under the condition of a floating interest rate and put forward toadapt to China’s commercial banks at present managing interest rate risk measures， so asto enhance our country faces various challenges in the marketization of interest rate in theCommercial Bank.