Commercial Bank’s Interest Rate Risk During The Process Of Interest Rates Liberalization

In twentieth Century60s, many countries realized that the control of interest rate brought negative effects to the financial market. So they gradually liberalized controls of interest rate. These countries adopted gradual reform or radical reform. Ones of them were succeed or failed. It shows that the interest rate liberalization is a very complex project. Since1995, our country has proposed the interest rate liberalization. Interest rate liberalization has experienced a long process in our country. So far interest rate liberalization has achieved great results. On the one hand, interest rate liberalization brings the developing opportunity for commercial bank, such as to help to optimal allocation of commercial banks’resources, to increase the autonomy of commercial banks. However, it also brings a lot of risks to commercial banks, especially interest rate risk. Interest rate risk is the unvarying risk. It will exist with the changes of interest rate in a long term. It is a widely attention question how to help commercial banks to deal with the interest rate risk in the financial sector and financial issue. Many scholars studied the interest rate risk under the interest rate liberalization. And they has achieved abundant research.The paper studies the interest rate risk under interest rate liberalization, taking the Agricultural Bank of China as the research object. The paper summarizes the current situation of interest rate risk of commercial banks in China. The paper shows that the measurement is not accurate, the prevention tools are not perfect. The ability to deal with interest rate still remains to improve. Based on the current situation of dealing with interest rate risk under interest rate liberalization, the paper mainly provides some measures to deal with interest rate risk. It contributes on dealing with the interest rate risk of commercial banks. Therefore, it has certain theoretical and practical significance.The paper mainly uses the literature research method, mathematical statistics method, case analysis method and others. The paper is be divided into six parts. The first part is the introduction, mainly introducing the research background, purpose and significance, summarizing the status of research at home and abroad, and the focus, difficulties and innovation. The second part mainly introduces the process of interest rate liberalization of developed and developing countries, summarizes the experience, and then introduces the process of interest rate liberalization of our country. The third part mainly introduces the interest rate risk of commercial banks under the interest rate liberalization, including classification of interest rate risk of commercial bank, the measures of interest rate risk, prevention tools of interest rate risk. The forth part analyzes interest rate risk and risk management of commercial bank of our country under the interest rate liberalization, for example the Agricultural Bank of China, and analyzes the ability to deal with the interest rate risk. The fifth part mainly puts forward some countermeasures to deal with the interest rate risk from the micro and macro. The sixth part is the conclusion.