Study On The Interest Rate Risk Of Commercial Banks In China In The Context Of The Interest Rate Liberalization

Interest rate is the reference signal of financial market and the key indicator offinancial product supply and demand. Promoting the progress of interest rateliberalization helps to efficient allocation of capital and improves the operationalefficiency of monetary and capital markets. Interest rate liberalization as key anddifficult points of China’s financial sector reform, accelerates the trend recently. So far,China has opened up the limitation of loan interest rates, and deposit rate regulationwill be open within two years, central bank governor, Xiaochuan Zhou predicting,during the two sessions in2014. With the new strides of market-oriented interest ratecontinuously, interest rate fluctuations are increasingly frequent, floating range is alsogrowing, as a result of interest rate risk to commercial banks has brought the hugechallenge. In our country, commercial bank lack of high-end talent managing interestrate risk currently, the interest rate risk management system and supervision measuresis not perfect and so on. Therefore, further study interest rate risk management underinterest rate liberalization, not only has profound significance in theory research, butcommercial bank also demands urgently.This article is divided into five parts. The first part describes the researchbackground and significance, summarizes the existing theoretical literature andintroduces the research idea, at last explains the innovation points and shortcomings.The second chapter introduces the theory of interest rate liberalization and interestrate risk, emphasizes the types of interest rate risk and the influence of interest rateliberalization to interest rate risk of commercial bank. The third chapter introducesthree econometric model and evaluate them, and then analyzes the interest ratesensitive gap analysis the applicability in China. The fourth chapter is the empiricalpart, through the interest rate sensitivity analysis and interest rate sensitive gapanalysis measure the interest rate risk. The fifth part tells the problems andcountermeasures. For the problems of interest rate risk control, the article gives somesuggestions from two sides,one is for the commercial bank, and the other is for the external environment.