A Study On The Risk Management Of Qishang Bank Xi’an Branch In Process Of Interest Rate Liberalization

There are a lot of developed countries implement market-oriented Interest rate liberalization as a positive channel to stimulate economic development, Since the1970s. Interest rate liberalization has been played a positive role in the adjustment of economic structure, improve marketing degree and promoting economic development, which bring enormous risks and challenges on commercial banks and financial system. The bank achieves to crisis into opportunity, business transformation and embarked on a healthy road of sustainable development which adjusts risk management policies and business strategies on time. However, the backward of risk management and business strategy lead the bank cannot adapt the rising costs, which lead to benefits spreads, decline in profits, quality customers and staff turnover increased substantially non-performing assets have been mergers.Since the1990s, with the gradual advance of China’s Interest rate liberalization, the impact on the financial institutions, as well as Small and medium-sized banks is a growing. Therefore, research on risk management in the Interest rate liberalization has a profound practical significance.Qishang Bank, Xi’an Branch was established in April2010.With business development, the policy of Interest rate liberalization and complex macroeconomic environment bring to face a great impact and challenges. Therefore, this paper comb the Process of Interest rate liberalization, use the analysis of indicators and data analysis methods which is stipulated by China Banking Regulatory Commission to analyses operations and risk management of Xi’an Branch. It is found that the risk management is not comprehensive and flawed organizational structure, risk system is not perfect, risk management tools and techniques behind, risk management needs to be improved. For these problems focusing on interest rate risk management, market-oriented reform and other issues should be strengthened after, combined with Xi’an Branch of risk management changes after the actual situation and market-oriented reform of interest rates, proposed the establishment of credit risk, liquidity risk, operational risk categories focus on risk identification system, the establishment of a comprehensive risk management on the basis of category management, rationalize the organizational structure, supplement and improve the risk management system, focusing on strengthening credit risk, liquidity risk, operational risk prevention, risk management, incentive and restraint mechanisms to improve prevention programs and other proposed safeguards implementation of the program. These studies in order to play a role in align the impact of Interest rate liberalization and healthy development.