Risk Management of Commercial Banks under Interest Rate Liberalization

2021 ◽  
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Commercial Banks ◽  
Interest Rate Liberalization

scholarly journals Duration gap analysis revisited method in order to improve risk management: the case of Chinese commercial bank interest rate risks after interest rate liberalization

2019 ◽  
Vol 24 (18) ◽  
pp. 13609-13627
Author(s):  
Marcel Ausloos ◽  
Qianhui Ma ◽  
Parmjit Kaur ◽  
Babar Syed ◽  
Gurjeet Dhesi
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Commercial Banks ◽  
Value At Risk ◽  
Gap Analysis ◽  
Rate Sensitivity ◽  
Operating Income ◽  
Interest Rate Liberalization ◽  
Duration Gap ◽  
The Interest Rate

Abstract Modern theories attach much attention to interest rate-related problems. We discuss the impacts of the interest rate liberalization, in China, for ten commercial banks of three markedly different ownership types. The methodology is based on revisited interest rate sensitivity analysis, duration analysis and value-at-risk analysis. The situation is examined within both vertical (composition of operating income and interest rate sensitivity gap for the ten banks in the same year) and horizontal (one bank over a 7-year period) aspects. Thereafter, we discuss the present management of interest rate risks by such banks. We conclude with several suggestions on how such commercial banks risk management can be refocused and on how their cases can be used for comforting other banking cases.

scholarly journals The Influence of Interest Rate Liberalization on Commercial Banks and Its Countermeasures

2020 ◽  
Vol 9 (1) ◽  
pp. 34
Author(s):  
Mengting Jiang
Keyword(s):  
Economic Development ◽  
Interest Rate ◽  
Commercial Banks ◽  
Economic Situation ◽  
Financial Reform ◽  
Interest Rate Liberalization ◽  
Loan Spread ◽  
Current Economic Situation ◽  
The Impact

<p>The liberalization of interest rate is an important part of the financial reform in China under the current economic situation, and it is the inevitable result of the economic development of China to a certain extent. With the deepening of interest rate liberalization reform in China, commercial banks have been affected to a certain extent; the deposit and loan spread, which accounts for the main income of commercial banks, has been narrowed, and the profit space of commercial banks has been further reduced. Therefore, this paper discusses the impact of interest rate liberalization on commercial banks and the choices that commercial banks should make under this situation.</p>

scholarly journals Challenges and measures faced by commercial banks under interest rate liberalization

2021 ◽  
Vol 14 ◽  
pp. 63-68
Author(s):  
Jiuding Li ◽  
Youchuan Cui
Keyword(s):  
Interest Rate ◽  
Commercial Banks ◽  
Debt Management ◽  
Rate System ◽  
Interest Rate Liberalization ◽  
Interest Rate Marketization ◽  
Management Concepts ◽  
New Business ◽  
Market Instability ◽  
And Control

the maturity of interest rate marketization marks the transformation of China's interest rate system from the traditional interest rate model to the new one.As an important participant in the reform of interest rate marketization, commercial banks are faced with many challenges, such as the decline of profit level, the substantial increase of operational risk, the increase of financial market instability, and the increase of liquidity risk.They should actively explore new business and management concepts, adopt measures to improve the prices of financial products and derivatives, introduce risk management and control mechanism, develop bank's intermediate business, and promote the development of bank's intermediate business In order to ensure the healthy and stable development of commercial banks, we should take positive measures such as strengthening the ability of debt management, reasonably dealing with the challenge of interest rate marketization.

scholarly journals Interest Rate Liberalization and Commercial Banks Profitability: Evidence from China

2020 ◽  
Vol 12 (5) ◽  
pp. 90
Author(s):  
Lai Ying
Keyword(s):  
Interest Rate ◽  
Empirical Study ◽  
Interest Rates ◽  
Commercial Banks ◽  
Well Being ◽  
Key Factors ◽  
Interest Rate Liberalization ◽  
Production Growth ◽  
The Future ◽  
The Impact

Enhanced profitability is an important guarantee to improve the well-being of people and better exert the functions of commercial banks in promoting economic, social and production growth on the premise of the existence and development of commercial banks. Interest rate liberalization is one of the key factors which can affect the profitability of commercial banks. An empirical study is thus carried out on 16 Commercial banks (from 2007 to 2018) to analyze the impact of interest rate liberalization on the profitability of commercial banks. We draw main conclusions from this study: (1) the progress of interest rate liberalization has improved the profitability of banks. (2) This kind of impact is inverted U-shaped, that is, with the advancement of interest rate liberalization, the impact will be reversed in the future. (3) For banks of different sizes, the impact is different. Specifically, small and medium-sized banks are more sensitive to the liberalization of interest rates, while for larger banks, the impact is not strong.

Sign in / Sign up

Export Citation Format

Share Document