Research On The IRR Of City Commercial Bank In Interest Rate Marketization

With the development of the economy and the reformation of Chinese economic system, the pace of interest rate marketization is more and more quickly。 Interest rate marketization brings much of development opportunities to commercial banks, but it also exposes commercial banks under more risks.In the process of interest rate marketization, compared with the controlled period,the fluctuation of interest rate will be frequently and drastically.Volatility of interest rate brings changes of commercial bank’s income and economic value.In particularly,compared with the large commercial banks,because of city commercial banks late start,small scale and poor management,they are easier impacted by marketization.So,it is necessary to research the IRR of City Commercial Bank in Interest Rate Marketization.Firstly,this paper describes the overview of interest rate marketization,including the connotation of interest rate marketization,the enlightenment of the developed contries’interest rate marketization,the interest rate marketization process of our contury and what opportunities and challenges it brings to our city commercial banks. Secondly,is to analysis what interest risks city commercial banks faced in the whole process of interest rate marketization. The first step is to identify and measure the rate risks by the combination of empirical and theoretical,and then analysis the ability commercial banks reply to the rate risks.The second step is analysis what kind of rate risks city commercial banks faced when the process of interest rate marketization is over, this part is divide into two time slots-the transition period and the mature period. Thirdly, according to the analysis above, point out the problems in management of interest risks from two aspects-the external environment and their own development.Finally,throw out suggestions to strengthen the management of interest rate risk on the basis of drawing on foreign experience and considering our owe characteristic.