Research On The Risk Management Of Bank Interest Rate In China

After the 1980s, the economic globalization has been accelerating financial liberalization within the scope of the wave around the world. Driven by the financial innovation, the western developed countries have completed the reform of interest rates based on market. On July 20,2013, People’s Bank of China abolish the control of all financial institution’s loan, which indicates that the liberalization of interest rate in our country has achieved the final key period, and the risk of the interest rate which is frequently exposed in the process has become one of the main risk to the banking sector. The incompleteness of our current control mechanism of domestic commercial bank interest rate and the lack of professional talents brings serious challenge for their own interest rate risk management. However, the western developed countries have rich experience in the risk control of interest rate. Therefore, it has become one of the important subject to affect long-term development of the banking sector that we should, based on the present situation of domestic banking industry, learn effective lessons from western countries’ advanced controlling technology of interest rate risk and adopt more suitable measurement of risk in commercial bank interest rate to improve the level of interest rate risk control of our country.This paper expounds the commercial bank interest rate risk management theoretical basis, To explore the causes of commercial bank interest rate risk, theoretical origin, characteristics of changes and form of expression, after examining the current mainstream of the world’s three major interest rate risk control technology and methods, each methods advantages and disadvantages are summarized, secondly, on the basis of reviewing the interest rate liberalization in our country from 1993 to date, for its impacts to our country commercial bank in both macroscopic and microscopic levels, at the same time, analyzes the problems existing in the Chinese commercial bank interest rate risk management, and then combine the domestic current situation of the banking industry choose to suit our country commercial bank interest rate risk control technology and method, and the reasonable selection of sample interval data bank and history to empirical research; Finally, based on the analysis on the basis of the empirical research conclusion, in order to promote the interest rate risk control level of domestic Banks and promote the development of the innovation of commercial bank effectively, this article put forward targeted policy Suggestions, commercial bank interest rate risk management concept innovation, strengthening the management of interest rate risk appetite framework and, hard skills, strengthen the construction of the internal mechanism, improve the ability of dynamic monitoring of interest rate risk measurement, risk correlation study, establish and perfect the interest rate decision mechanism, promote the interest rate risk management department and other business departments benign interaction, the reasonable choice asset liability management (ALM) and off-balance-sheet financial derivatives two interest rate risk control strategies to evade interest rate risk and so on, to further strengthen the interest rate risk management to improve their level.