Research On Corresponding Strategies Of Chinese City Commercial Banks In Interest Rate Liberalization Background

Interest rate liberalization plays a critical role in financial innovation of our country, in which financial institutions are vested with the pricing right of deposits and loan capital, but have to face some challenges come along. City commercial banks are impacted more violently during this liberalization because of their smaller assets scale and weaknesses in administration. The impacts due to interest rate liberalization exist not only in market environment and competition pressure, but also can be recognized easily in the reducing of interest margin and the increasing of credit risk. Therefore, it is important for city commercial banks to make appropriate risk management strategies so as to raise the overall risk management ability and then meet their goal of operating continuingly and stably.By the end of 2015, the interest rate liberalization of China has completed in general. In recent years, economics situation and financial environment have been changed variously in both domestic and oversea markets, which makes profound impacts to city commercial banks of our country. This paper will analyze on the risks within city commercial banks and the impact they have to deal with due to interest rate liberalization, adopting literature research, data analysis and experience summarization methods based on the practical circumstances, selecting several typical samples, and taking their essential characteristics into account. It assesses the risk status of city commercial banks considering Interest-sensitivity gap, maturity structure, operating results and the advantages that can be used to improve risk management, then proposes on their operating strategies, which has certain reference significance to solve the risks in city commercial banks nowadays.