The Empirical Study About The Interest Rate Risk Management Of Rural Corporate Financial Institutions Under The Marketization Of Interest Rate

In recent years, People’s Bank of China had Promoted the reform of interest rate step by step in accordance with the basic idea and sequence of" first foreign currency after currency; first loan after the deposit; first long-term, large after short-term, small". In 2013, the People’s Bank of china canceled the loan lower limit, it marked financial institutions could decide loan interest rate based on business principles and competitive conditions, so it was a key step for marketization of interest rate. By 2015, the People’s Bank of china canceled the deposit upper limit. This indicated that China’s marketization of interest rate has entered into a new stage. Marketization of interest rate brings new vitality to the development and competitiveness of financial institutions, but it also adds to the uncertainty of interest rate fluctuations, particularly because of the less developed financial markets, the distempered economic and financial system, and the economic downward trend, so the uncertainty of interest rate changes is more difficult to grasp, the possibility of interest rate risk increased. Especially in Guangxi, the risk management system of rural cooperative financial institutions is not yet perfect, and it’s risk identification and control experience is inadequate, so the implied interest rate risk is more higher.Based on the risk of marketization of interest rate, this paper identifies and evaluates the interest rate risk of rural cooperative financial institutions in Guangxi under the marketization of interest rate. First this paper identifies the interest rate risk using the qualitative analysis methods, then it evaluates the problems of, including interest outdate interest rate risk management concept, unsound management mechanism, outdate management tools and methods, lack of management professionals, underdeveloped of financial derivative instruments to hedge interest rate risk, and so on. In the end, this paper gives relevant advice from the external environment and internal management aspects.