The Research Of Interest Rate Risk Management Under The Condition Of The Marketization Of Interest Rate

With the deepening of China’s market-oriented economic reform and furtheradvance, and in the wave of financial globalization, driven by further relaxing controlson interest rates, the full realization of the interest rate market has become an inevitablerequirement of China’s financial reform and economic development. By the interest ratemarket is necessarily the most direct impact of the commercial banks. Commercialbanks as a whole, creating a social credit and credit intermediaries, the impact of thedevelopment of the entire national economy deep to far. Interest Rate Liberalization onChina’s commercial banks is a double-edged sword with a double-sided negative effects.On the one hand the interest rate market will bring more relaxed banking businessenvironment, to a certain extent, increased autonomy of commercial banks, so thatbanks can develop personalized with competitive interest rates in accordance withmarket principles and the specific circumstances of the customer, while interest ratemarket also helps promote financial innovation, improve operational efficiency ofbanking. On the other hand, the interest rate market has brought more intensecompetition among peers, with the interest rate market spreads narrowing fromfrequent fluctuations in interest rates and commercial banks are a huge impact, with theincrease of interest rate risk may also induce the credit risk, the risk increases andchanges facing the bank balance at the ability of commercial banks is also a greatchallenge.Through theoretical analysis and comparative analysis methods, such as exploringsummarizes the path of the interest rate market and history, combined with empiricalanalysis of the impact of the interest rate market to face China’s commercial bankstargeted suggestions on theory and policy. Interest rate market for China’s commercialbanks are both rare opportunities and is a great challenge, but only to embrace thechallenge of choice is the tide of history. China’s commercial banks should activelylearn from the advanced experience of foreign countries first off commercial bankinterest rate risk management, combined with the actual situation of China’s bankingindustry specific, making the methods and strategies in the western commercial banksinterest rate risk measurement and management to achieve localization, so that it can befor our interest rate risk management of commercial banks use.