The Research Of Interest Rate Risk On City Commercial Banks Under The Interest Rate Marketizatin Reform

From January 1986 to now,after more than 20 years of hard work,the Interest rate marketization reform in our country has made great progress. We ease the Libor in June 1996 and in July 2013 we release the loan interest rate regulation, C hina’s market-oriented interest rate reform has made substantial progress. In 2014 after the two sessions, market-oriented interest rate reform was placed on the important agenda, central bank governor Zhou Xiaochuan, said in a recent two years, the interest rate s on deposits will also be let go, this is the last step of the market-oriented interest rate reform. This means that the central bank began pricing power gradually give way to the market, let market forces of supply and demand to adjust interest rates. The deposit insurance ordinance(draft) "in November 30, 2014 formally put forward, to the society for a period of 30 days comment today, which means that the deposit insurance system after 20 years of" distance "finally is expected to be officially launched. But at present, our country’s financial market is not perfect, the interest rate management mechanism is not yet mature, our country commercial bank is facing unprecedented opportunities and challenges. Therefore, by means of analysis, measurement and ma nagement, establishing and perfecting the system of interest rate risk management, improve the supervisory ability of the our country commercial bank interest rate risk has very important significance.According to the experience of other countries, relax after deposit ceiling, competition between commercial Banks will increase, the most direct performance is the entire banking industry spreads tightened. Competition makes the poor risk control of commercial bank. City firm of our country is mostly by the urban credit cooperatives, rural credit cooperatives and the fsa’s consolidation within the city. By the end of 2013, a total of 146 city commercial Banks in our country, the city of businesses has become an indispensable important component in the financia l system in our country. However, the current city commercial bank is filled with company management structure is imperfect, the internal control system is not sound, risk management and control ability is weak, inadequate capital, and the phenomenon such as poor asset quality. These were severely hampered the healthy development of the city firms. With the increasingly market-oriented interest rate reform, city business should not only face the powerful state-owned Banks, even in the face of performance outstanding outstanding joint-stock commercial Banks, asset quality and are vigorous reform of rural credit cooperatives and post office and menacing foreign- funded Banks. So, the interest rate marketization will firm which influence to our country city, city businesses are facing what’s the interest rate risk, should be how to identify and measure the interest rate risk and city firms for effective risk aversion is what we need to study.This paper will use interest rate sensitive gap model and the VaR model to empirical analysis of the sample Banks, and on this basis in view of the problems existing in the current our country city commercial bank put forward corresponding countermeasures.