Analysis On Problems And Strategies Of Interest Rate Risk Management For Chengdu ZX Bank

Year 2005 is the "year of risk management"for Chinese financial industry. The major risks commercial banks facing respectively are: credit risk (65%),operational risk(15%),market risk(10%), and flow risk(10%). Among these, interest rate risk has become one of the most important market risk commercial banks in China are facing now.In the 90's, the interest rate of China remains mostly stable, which in turn caused low consciousness of interest rate risk for commercial banks. However, since the year 1993, interest rate policy has become a significant currency policy facility. The Central bank also adjusts the rate frequently to achieve its goal in currency policy. At the same time, along with the fast improvement of rate market, the promises of WTO is cashing in. Interest rate risk is becoming...