| Since1970s, a far-reaching worldwide financial transform raised up silently, which started by the investigation of the Financial Repression and Financial Deepening by2theoretical scholars Ronald I. Mckinnon and E. S. Shaw, expressed as the fresh wave of financial liberalization, take the Interest rates liberalization as the core. Same time people started to concentrate and emphasis on the problems came along with the opening of interest rate, like the fluctuation of currency exchange rate, and the prominent interest risks of the financial institutions.In the wave of the interest rates liberalization, the fluctuating level of the interest rates would be aggravated as the huge changes from the interest rates level and structure of a country. At same time if the country does not have robust market mechanism, with the property transformation not in place and the undeveloped financial market, the commercial banks of the country would be in difficult positions of depression of interests return and market value, and the treat of living space. We observed the huge impact of the interest risk to financial institutions especially banking deposit financial institutions in the last several tens of years. The major bankrupts of the US saving institutions in1980s were mostly caused by the interest risk. As the more and more fluctuating of the interest rate, those financial institutions which are not adaptable with the fluctuating or not well prepared will experience the fall in net interest income and net present worth, many financial institutions will even face the situation of bankrupt.China established the Decision of The State Council on Reform of the Financial System in1993, which is as significance as it was the first time setting the interest rates liberalization goal by legislation. Since then the reform of interests rate accelerate, after20years development, there are already119accumulated manageable types of open, merge and cancel of the foreign currencies by the People’s Bank in China. The interest rate system is also standardized and now is the critical period of interests rate liberalization. There is still lack of clear understanding of interests risk of China’s commercial banks. Although certain autonomy are established in interests rate management, the sensitivity level of the interests change is still low, and the attitude which value the credit risk and despise the interests risk still exist. The interest rate management methods are also limited to certain basic tools and methods such as asset-liability ratio method and notch sensitivity analysis, not able to innovate the financial risk management tools regarding self exposed risks, as well as lack of professional interest risk management talent and team.Based on this kind of consideration, the author of this paper has chosen the topics about the risk management as the topic of master’s thesis.:the topic is "research on interest rate risk management in the process of marketization of interest rate in our country. This paper firstly stated the reform process of interest rate of China’s market-oriented reform process and points out that the assets of commercial banks has basically realized the state of marketization, while on the liability side, there still exits a ceiling regulation of the commercial bank deposit interest rate, market-based pricing products and interest rates near "and" controlled products. Bond and liabilities in financial institution totally accounted for20%,while only this part has been achieved the marketization. Accounted for nearly80%of the regular savings rate is still relatively strict control. But as this year to the rise of the Internet financial as well as the development of the shadow banking, the pace of market-oriented interest rate reform in our country presents the trend of faster and faster.Duo to the current situation of interst rate, this paper aims to discuss the influence the marketization of interest rate has had on commercial bank. First of all, this paper analyzes two aspects,one is the types of interest rate and the other would be the management style for interest rate. Secondly, the paper also focus on the marketization of interest rate after completion of the change of interest rate risk of commercial Banks in China and finds out that in addition to the face and the more complex the traditional interest rate risk, commercial Banks also face a business transformation, asset restructuring, changes of these three kinds of secondary regulation system risk; Finally, exampled by Wells Fargo bank, this paper puts forward the response solution to risk change after interest rate marketization reform, which would give a reasonable solution for China’s commercial Banks. |
PDF Full Text Request