The Impact Of Interest Rate Liberalization On Domestic Commercial Banks And The Corresponding Countermeasures

This paper recalls the relevant work for the interest rate liberalization from both domestic and foreign researchers. The definition of the interest rate liberalization is introduced, and the typical process of the interest rate liberalization of the economic entities worldwide are recalled in detail, and the interest rate liberalization idea of both step-by-step and radical styles are compared and analyzed, the step-by-step style is pointed out as one of the most important foundations for the successive interest rate liberalization reform.Meanwhile, the process of the interest rate liberalization in China is summarized, and the step-by-step strategy is classified as the proper method for the interest rate liberalization in domestic market, at the same time the noticed risk is pointed out and the influence of the interest rate liberalization on commercial banks in the progress of the interest rate liberalization in China is studied.Problems facing commercial banks in the new interest rate free economic environment are discussed in detail, the current management state and the interest rate risk of commercial banks are researched from two aspects, and operational method of the measurement of the interest rate risk is introduced. The current control state of the interest rate risk of our countries’banks in domestic market is researched and the interest rate measuring tools are utilized to analyze the main commercial banks in China empirically. The strategy of risk management for the interesting rate of commercial banks in new economic environment is summarized, and both of management strategy and suggestions of the interest rate risk management for our countries’commercial banks are proposed.