Research On Interest Rate Risk Management Of China 's Commercial Banks Under Interest Rate Marketization

China paid attention to interest rate liberalization since the 1990s, and now have been liberalized trade and loan interest rates. Interest rate is the price of capital, interest rate liberalization can improve the funds allocation in the financial market, promote economic growth. At the same time, the interest rate liberalization is the core of market economy and an essential condition as the international market. On November 23,2014, the People’s Bank of China announced the deposit interest rate floating to 1.2 times. Again on March 1, 2015, the people’s bank of China announced that reduction of in loans and deposit rates, at the mean time deposit interest rate upper limit is 1.3 times of the benchmark deposit rate. Under the background of interest rate liberalization, the announcement of reduction interest rates in March is just the beginning of quantitative easing in 2015. The speed of economy growth becomes slow, the economic downward pressure is bigger, along with the Internet financial compete deposit with commercial bank, the deposit rates possible upward, it will narrow commercial bank’s net interest margin. In the new market environment, commercial banks need to change the business strategy and focus on how to manage interest rate.In this paper, I analysis commercial bank interest rate risk management model. Through the comparison and empirical analysis, collecting data, integrating theory with practice and other means. First, I summarize the process of our country commercial bank interest rate liberalization reform, including money market rates, the bond market, commercial bank deposit and lending rate liberalization. With the data, I analysis the challenges and opportunities which our country commercial bank faced in the process of interest rate liberalization. Second, introducing the interest rate risk management model of developed countries and the interest rate risk measurement method. Third, selecting the appropriate interest rate risk management model and the data of the empirical analysis with the present situation of our country commercial bank. Finally, providing advice for commercial bank to improve interest rate risk management.