The Impact of Interest Rate Marketization on the Interest Rate Risk of Commercial Banks

With the continuous advancement of interest rate marketization in China, the volatility and uncertainty of interest rate levels have become more and more significant. As is well known, merchant banks, as the core of the financial system, are derived from net interest income. Therefore, interest rate venture will also become a major risk affecting China’s merchant banks, which will have an impact on the stability of China’s financial market. This paper starts with the concept of interest rate marketization, analyzes the influence of interest rate marketization on merchant bank interest rate venture from the perspectives of merchant banks’ on-balance sheet business and off-balance sheet business, and proposes countermeasures.