Measure On Interest Rate Risk Of The Chinese Commercial Banks Under The Marketization

With the accelerating marketization of interest rate in China, the issues of risk management has become increasingly prominent, and strengthening interest rate risk has become an urgent requirement of commercial banks. Marketization of interest rate is not only running the realization of the entire financial system market, improving the inherent requirements of the entire financial system operating efficiency, but also adapting to the uniform rules of the global financial markets, actively participating in the international economy and laying the foundation for financial cooperation and competition. Marketization of interest rate will produce a full range of impact on commercial banks in China both in the short and long term. How to calmly deal with the opportunities and challenges of the market and improve the level of interest rate risk management, has become an urgent task for China’s commercial banks to earn an invincible position in an increasingly market-oriented and increasingly open business environment. This paper studies interest rate risk management of the commercial bank, explores suitable models for domestic commercial bank’s interest rate risk management. It has important theoretical and practical significance.This paper reviews the process of China’s market-oriented interest rates, there will be more frequent fluctuations in interest rates within marketization of interest rate, and it has become more unpredictable. Then leads to the risk of Marketization of interest rate, further reveals the risk of interest rates of commercial banks in the process, and the management of the status quo in the process of China’s commercial banks interest rate risk. Followed by a discussion of the commercial banks for some measure of interest rate risk, including:the use of the general term gap method to measure the interest rate risk of banks; the use of the long-term to measure interest rate risk of in the banking assets of bond; the use of Var to measure interest rate risk of commercial bank. Finally, the paper suggests some measures to control and monitor interest rate risk.