The Marketization Of Interest Rate And The Interest Rate Risk Of Commercial Banks Measure Research

Trend of finance liberalization has spread to the whole world from1970s, which focuses on liberalization of interest rate and free exchange rate, and has influenced the development of world economy. The fluctuation of interest rate has affected the operation and management of commercial banks more and more obviously after loosing the interest rate control. The competition grows in financial market. The efficiency of operation and management of commercial banks needs further improvement. Interest rate risk has become the main market risk for the fluctuation of interest rate makes it impossible to determine the net interest income and market value of commercial banks after liberalization of interest rate.Liberalization of interest rate requires that commercial banks recognize and measure the interest rate risk effectively. Without effectively measurement, there can be no interest risk management to speak of and the operation risk of bank will be dramatically enlarged. Western commercial bank has established a perfect measurement system of interest rate risk after several dozens year development. Therefore, it is especially important to adopt the advanced experience of risk management of bank abroad, establish an interest rate risk measurement system with characteristics of the Chinese, and improve the interest rate risk management of banks in our country.This article first introduces the liberalization of interest rate in our country, makes a deep analysis in the cause and forms of interest rate risk and the interest rate risk that commercial banks in our country are facing now and in the future. And then study the application of interest rate sensitive gap and duration on the basis of detailed comparative analysis on the four methods of interest rate risk measurement from the perspective of history. Finally discuss the issue about optimal selection of interest rate risk measurement method of commercial banks in our country by adopting relevant experience from western commercial banks and according to actual situation that our country are facing.