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Challenges in Implementing Interest Rate Risk Management in China Free Essay, Term Paper and Book Report

Challenges in the interest rate risk management for commercial banks in China Recently, the implementation of interest rate risk management for commercial banks in China is still at its initial stages and lack of criterion. Many improvements are needed in such areas as raising interest rate risk awareness, building IRR management mechanism, training professional talents and risk control skills. The main problems in interest rate risk management for commercial banks in China are as follows: 1. Lack of attention in implementation of interest rate risk management With the central banks relaxing their controls of interest rate over the commercial banks, the interest rate management mechanisms have developed and improved in a rapid speed. Compared with those western countries, the Chinese commercial banks are greatly short of the awareness of interest rate risk management, since before 1990s, the interest rate was strictly regulated by the government and the official prime rate was almost fixed, which attracts almost no perception and concern about the interest rate risk in the market.......

Word Count: 1121
Page Count: 4.4  (250 words a page / double spaced)


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