Research Of China Commercial Bank Loan Interest Rate Risk Management Under The Background Of Interest Rate Marketization

The risk management is one core of the modern commercial bank management. Itfaced by financial institutions during the operations can be roughly summed up as marketrisk, credit risk and operational risk. As the interest rate is the price of financial productsand an important monetary policy tool, the interest rate risk has been the most importantcomponent of market risk.The commercial banks in our country should make a big change in structure in orderto adapt to the development of marketization of interest rates and to keep an invincibleposition in the increasingly fierce market competition. So interest rate liberalizationpromotes the development of commercial banks. But at the same time, banks interest raterisk will be highlighted further, especially the risk of loan interest rates. Under the situationof interest rate marketization, what commercial banks need to care about most is that howto reform themselves to benefit their own development and to strengthen the riskmanagement for loan interest rate. So it is necessary to study the commercial bank loaninterest rate risk management under the background of interest rate liberalization.This paper firstly introduces the interest rate risks that exist in the process of interestrate liberalization in our country. Then describes the reformation of loan interest ratemarketization in our country and the current situation of the loan interest rate riskmanagement as well as puts forward the risks that loan interest rate brings to thecommercial banks. Finally, accroding to oreign commercial bank loan interest rate riskmanagement methods and inspiration after the interest rate liberalization, this paper givessome advice to China’s banking industry about how to manage the loan interest rate risks inthe background of interest rate liberalization, hoping that can help China’s commercial banks improve the ability of resist risks...