Interest Rate Risk Management Of Commercial Banks Under The Interest Rate Marketization Condition

To carry out the interest rate marketization is an important content for Chinese banking reform. The earlier reform in our country put emphasis on rationalizing the price of commodity. Then began to make the means of production maketization and rationalization after the end of 1990s. Capital is the basilic means of production, and interest rate is the price of capital, thus the interest rate makteization is a main aspect of the price's maketization for the means of production. Commercial bank is an institution, which deals in money, so the interest rate makteization takes a direct effect on it. Since 1996, interest rate, which was used by the central bank of China as lever to adjust and control the macroeconomic, fluctuates so frequently that it has no parallel in the history since the foundation of P.R.C. Our domestic banks'benefits has been impacted seriously by the more and more frequent adjustment and incertitude of the interest rate. Moreover, due to the historical reason, the interest rate risk management is always neglected by the domestic banks, which makes most of the commercial banks almost have no idea of interest rate risk, measuring and managing techniques on interest rate risk are poor and laggard. Therefore, study and analysis of interest rate risk, perfecting the interest rate risk management system become one of the most important and urgent tasks confronted with the commercial banks. On this point, the paper chooses the topic—Interest Rate Risk Management of Commercial Banks under the Interest Rate Makteization, and hopes to promote the level of interest rate risk management in our domestic banks. The paper is divided into four parts, and six chapters in all. The first part is chapter one, it presents the backgrounds, the purpose and the significance of the study;lists an overall survey of the study in China and some other countries;introduces the train of thought,the method adopted and the innovation of this research. The second part includes chapter two and chapter three. In this part, the paper mainly talks about the bringing of the interest rate risk, also it analyses the actuality of interest rate risk management in the domestic banks. And it provides the gist for the nether study. The third part is chapter four. It chiefly discusses the measurement and controlling techniques of the interest rate risk in modern commercial banks. The successful interest rate risk management is rely on the veracity of measuring the interest rate risk. Therefore,it is one of the core content of this paper. The fourth part consists of chapter five and chapter six. This part sets up the interest rate risk management system, and put forward some suggestions to promote the interest rate risk management level of the domestic banks. Conclusion: 1. The domestic banks are faced four types of interest rate risk under the interest rate marketization condition. 2. We should building the interest rate risk management system for the domestic banks. The author hopes those measures can help to enhance the capacity to manage the interest rate risk in domestic commercial banks.