Research On Interest Rate Management System Of Dongying Bank Under The Background Of Interest Rate Marketization

As the central element of modern economic finance, its tendency can influence the monetary and capital of a country. The market-oriented reform of interest rate has been quickened. To a large extent, the changes of interest rate give a heavy influence on the risks of the interest rate in commercial banks, and in our country, it is under the government’s control for a long time. The management of interest rate risk can not be improved in a short period of time, and the commercial banks should be improved and developed. In this paper, the author choose Bank of Dongying which has a good profit as the object of study, to analyze how to face the interest risks during the marketiation and to manage the risks. In view of this, how to manage effectively and systematically is the important problem that needs urgent solution.From the process of interest rate market and interest rate risk, this paper gives a research on the current management of Bank of Dongying, putting forward Interest rate risk management system and security measures. First, gives a brief introduction about this bank, to know the major business and structure, then, carries on a brief review on the interest rate marketization in our country, analyzes the its influence on the risk management.On one hand, the market-oriented reform of interest rate increases its periodic risks and persistent risks, so the repricing risks and yield risks are increased accordingly. On the other hand, market-oriented interest rate increased the difficulties on the interest rate floating management and the determination of. the interest rate, narrowed the interest rate differentials between deposit and lending. Then, this paper analyzes the interest rate risk management by using the SWOT method, the proportion between net interest and operating income and between liabilities, finding that there are so many problems in the interest rate risk management. Its debt structure lack of effective management, Interest rate risk management tools are backward, exists a few executing barriers, the professional organizations and experts of interest rate risk management are rare.To solve the above problems, this paper put forward the interest rate risk management system of Bank of Dongying. It should optimize the debt structure, change its operating characteristic of singe resource, and meanwhile, innovative financial products, establish financial products pricing mechanism. In the interest rate risk management, it should establish the mechanism of interest rate risk identification management, and set up specialized agencies and employ specialists to make sure its enforcement. Last, raises concrete measures.