| Asset-liability Management (ALM ) is a kind of comprehensive management method used by commercial banks to achieve set operational goals and to coordinate and monitor various transactions. So it represents the highest managerial level in all commercial banks,and has been playing a pivotal role in their operational management. As China Central Bank has been constantly deepening the reform of the interest rate liberalization,it is having an enormous impact on the operation of banks. For ICBC’s Hainan Provincial Branch, it also has to face the pressure imposed by the higher cost of deposit, drop of the loan profit and the narrowing of the deposit-loan rate. Meanwhile the competition within the same industry is heating up. Its capability of risk pricing is further tested, etc; on the other hand, the liberalization of interest rate is inflicting a huge challenge to the bank’s Asset-liability Management, requiring it to upgrade rapidly and develop a sustainable growth pattern. How to optimize the Asset-liability Management according to the market changes, thereby realizing the transformation of its business operation, reinforcing its competitiveness and enhancing its profit ability, demands a profound research.This paper targets ICBC’s Hainan Provincial Branch as its research object, though analyzing the current situation of the Asset-liability Management in the background of interest rate liberalization, it points out the existing problems: the narrowing of deposit-loan rate, the slowing down of its profit growth, the lack of variety in its asset business, the lack of initiative in its liability business, the deficiency in its pricing and accounting mindset, the weak capability of pricing, the lack of experience in rate risk management, lack of initiative of its management staff and so on. Finally,analyzes some successful cases of foreign banks,this paper proposes several strategies for the bank to reform the modes of its Asset-liability Management, optimize the structure of its asset and liability business, improve the management of rate pricing, perfect its risk management system. |
