The Risk Management of Interest Rate in the Commercial Banks

With the great advance of market-led interest rate reform in China, the risk management of interest rate will become the focus and a difficulty point of risk management for the commercial banks because they are facing with the interest rate risks like the sensitivity indentations, the structure alteration, the pre-paid loans by the loanees, the pre-drawing deposits by the depositors, the price risk in the bond investment, and the re-investment risk. It is of significance to be on guard and to solve the problem of interest rate risk by means of predicting interest rate scientifically, exerting the technology and tools of interest rate risk management skillfully, perfecting the internal control mechanism of interest rate risk.