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The Management Of Interest Rate Risk Of Commercial Banks Under The Background Of Interest Rate Marketization

Posted on:2015-08-11Degree:MasterType:Thesis
Country:ChinaCandidate:J W LiFull Text:PDF
GTID:2309330461499132Subject:Financial
Abstract/Summary:PDF Full Text Request
With the trend of international financial reform and financial innovation, China’s financial system reform constantly goes deeper, the interest rates liberalization has been developing steadily. So far, interest rates liberalization has been twenty years, and has made remarkable achievements. In July 2013, the lending rates was totally eased, which marks a further deepening of China’s interest rate liberalization. On the one hand the interest rate liberalization improves the resource allocation role of interest rates in the market, increases the vitality of the market, and promotes economic growth. It also makes markets more volatile, and the interest rate risk improves. The probability of suffering from interest risk has increased. Interest rate risk management will become an important issue for China’s commercial banks. Interest rate risk management of commercial banks is put on the management agenda. Because interest rate has been restricted for a long time, the commercial banks has been among the lack of understanding of interest rate risk and appropriate management experience. The interest rate risk management structure, interest rate risk monitoring and interest rate risk management measures are bad, coupled with inadequate financial market freedom, the lack of available financial management tools and trading markets, interest rate risk management is difficult. Because China’s commercial banks are dependent on the deposit and loan business revenue structure determines, the interest rate fluctuations have a significant impact on its income. Therefore, the study of the interest rate risk management is essential. The interest rate risk management system construction, interest rate risk or interest rate risk management tools and monitor, are new topic for our country.This paper analysis the interest rate liberalization and interest rate risk management, with the use of a combination of theory and reality, both qualitative and quantitative analysis methods. We sum up our process and the impact of the interest rate liberalization, providing that the interest rate risk management situation, pointing out the interest rate risk management problems and make policy recommendations on China’s interest rate risk management, which is very realistic guiding significance. This paper mainly does research on the following issues:First, describes the interest rate market meaning and content interpretation of the definition given by the Basel Committee on interest rate risk, analyzes the theoretical basis for the kind of interest rate risk. Second, reviews the process of marketization of interest rates, characteristics and objectives, analyzes and summarizes the interest rate reform due to the impact of commercial banks; Third, using gap analysis the risk management status of China’s current interest rates make empirical analysis, and pointed out the problems; Fourth, makes policy recommendations on our interest rate risk management problems.
Keywords/Search Tags:Liberalization of Interest Rate, Rate Risk
PDF Full Text Request
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