Interest Rate Commercial Banks To Interest Rate Risk Management

The reform of market-orientation of interest rate has entered a very important stage. The time of all kinds of interest rate determined by the market factors is coming. From the experience and empirical analyses after the changing of interest rate determined by the market-oriented factors, the volatility of the interest rate will increase, which will increase the interest risk faced by the commercial banks. Right now commercial banks in our country have felt the risk. While the commercial banks still have many problems concerning the risk management, the construction of the interest risk management system is in very beginning stage. It mesns that improving the level of interest rate risk management is a necessary and urgent task. Starting from the aim to improve the management level of interest rate risk in the commercial banks, this assay reviews, and evaluates the theories of interest rate determination and interest rate risk management, combining the practice with the theory, to design the structure of interest rate risk management for commercial banks in our country scientifically and institutionally.The essay is consisted of two parts that deal with theoretical and practical issues respectively. The firs part, which is composed by three chapters mainly, concerns the theories of interest rate determination and interest rate management.The chapter one examines the general laws of the interest rate determination from the point of views of the different. factors which determine the interest rate and the performance of these factors in different economic systems. According to the classification, summarization and evaluation, the writer argues that the history of the study and development of the interest rate determination can be distinguished into three levels: the first level is the study on the real economy. In this level the discussion of the interest determination is closely connected with the analyses of the theory of value. It means that we can find the shadow of the theory of value from the interest rate schools. All existed theories of value and interest rate determination have some reasonable core. Under different conditions different...