Interest Rate Risk Management Of Shanghai Branch Of Bank Of Communications Under Interest Rate Liberalization

In our country, the history of interest rate liberalization is 17 years. The interest risk is focused on by all the countries in the world, the ability to handle the risk is also not enough, just because we lack of theoretical knowledge and practical experience. So the main purpose of this research is to find a way to manage interest rate rapidly and effectively under interest rate liberalization.Thestudy,on the base of theories about interest rateandthe experience of developed countries, describes the interest rate risk management’s current situation of Shanghai branch, including basic situation introduction, its interest-rate environment and interest rate risk management of Shanghai branch. And then this article analyzes the level of interest risk and capability in shielding against risks, showing that there are some problems existing in structure of assets and liabilities and level of withstand risks. The study also analyzes the reasons, which are lack of advanced talents in interest risk management, unreasonable capital construction and poor risk management systems. Finally we build the interest rate risk management system suitable for Shanghai branch of Bank of Communications, includingmeasurement of interest risks, identification of interest risks, and the control of it.