The Interest Rate Risk Management Of Commercial Bank During The Process Of Interest Rates Liberalization In China

Since the 1990 s, our country gradually speeds up the pace of reform about marketization of interest rate. The research of interest rate marketization, especially related to the risk of study has been one of the focus to the financial sector. With China’s access to the WTO, a large number of foreign financial institutions entered to the Chinese market, the large number of new financial products and management concepts have great advantages in all aspects compared with China’s financial institutions, such new financial products attract a large number of Chinese money, so Chinese financial institutions will face some challenges. However, the interest rate market started late, coupled with the constraints of the reality of the situation, China’s long-term environment of financial repression have much impact on the reform, as well as awareness of risk management is weak, the pricing mechanism of financial products is not improved, internal control mechanisms related to the management are unstandardized, financial derivatives used in the process of marketization of interest rates is not sufficient and so on. It is difficult to adapt to this new financial environment in some cases, so we need to be reformed, and the interest rate market-oriented reform is an important and critical step, so we should pay attention to the risks and problems that may arise throughout the reform, we also should ensure the reform scientific. Now China’s interest rate market entered the critical period, the last step seems simple, but in the entire history of reform is crucial. But in the critical period, after the interest rate market is fully liberalized, the financial impact of the body will produce some questions, and we have to carefully consider how to deal with these risks. In the process of this reform, as an important point, the whole financial market commercial banks inevitably face the challenge of marketization of interest rate, at the same time how to effectivly manage the system, the interest rate risk has become a key point for financial world and the related academic researchers.From the perspective of the structure of the article, the first part introduces the background of the research, significance of this article, research methods, the article frame, etc., and some The theory of interest rate risk. The second chapter tells the basic theory of marketization of interest rate, interest rate risk, and the related theory and method about the interest rate risk. The third chapter introduces several models of interest rate risk measurement. The fourth chapter mainly analyzes some regulatory models of interest rate risk and the pros and cons of various regulatory model. The fifth chapter, it gives much advise for the management of interest rate risk.