Gao Dun Online School answers for you:

Financial instruments to avoid interest rate risk include floating certificates of deposit, futures, interest rate options, interest rate exchange rate and interest rate ceiling.

Interest rate risk is one of the main financial risks of banks. Because there are many factors that affect interest rate changes, it is difficult to predict interest rate changes. One of the key points in daily management of banks is how to control interest rate risk. The management of interest rate risk depends to a great extent on the management of banks' own deposit structure and the use of some new financial instruments to avoid risks or try to benefit from them.

Risk management is one of the core contents of modern commercial bank management. With the advancement of interest rate marketization, interest rate risk will also become one of the most important risks faced by commercial banks in China. The interest rate risk management of western commercial banks has matured after long-term development. However, the long-term interest rate control has led to the insensitivity of China's commercial banks to interest rate changes, insufficient understanding of interest rate risks and relatively backward interest rate risk management. Therefore, how to prevent and resolve interest rate risk and effectively manage interest rate risk has become an urgent and important problem for commercial banks. The following Gao Dun Online School will introduce financial instruments to you!

Floating interest rate cd

Floating-rate certificates of deposit refer to certificates of deposit that calculate interest based on the interest rate of loans or bills with the same term in a certain period in the money market, plus a predetermined floating range. Banks can raise funds through floating interest rate certificates of deposit and benefit from the term structure of interest rates.

future

Futures is a financial contract, including the sale of financial instruments or physical goods to be delivered in the future (usually on a commodity exchange). The value of a futures contract to an index or commodity at a future date. Futures is a trading method that spans time. By signing a standardized contract (futures contract), the buyer and the seller agree to deliver a specified amount of spot at a specified time, price and other trading conditions. Usually, futures are bought and sold on futures exchanges, but some futures contracts can be bought and sold through over-the-counter transactions. Futures is a derivative financial commodity. According to the types of spot subject matter, futures can be divided into commodity futures and financial futures.

Interest rate swap

Interest rate swap refers to the exchange of interest income (expenditure) generated by the principal at one interest rate with the interest income (expenditure) generated by the other party at another interest rate on the basis of a certain nominal principal, and only the interest with different characteristics is exchanged, but not the real principal. Interest rate swap can take many forms, and the most common interest rate swap is to convert between fixed interest rate and floating interest rate.

Interest rate ceiling

The upper limit is the percentage that the state allows commercial banks to float above the benchmark interest rate. Because the state has stipulated the benchmark interest rate, commercial banks can fluctuate up and down the benchmark interest rate given by the central bank according to their own conditions, and the upper and lower limits are the range of interest rate fluctuations. For example, the benchmark interest rate is 5.58%, and the upper limit is 10%, which is 6. 138%, which is 5.58%×( 1+ 10%).

The interest rate ceiling refers to the agreement reached between the customer and the bank, which stipulates a market reference interest rate and determines an interest rate ceiling level. On this basis, the seller of the interest rate ceiling promises to the buyer that if the market reference interest rate is higher than the agreed interest rate ceiling level within the specified period, the seller will pay the difference between the market interest rate and the interest rate ceiling; If the market reference interest rate is lower than or equal to the upper limit of the agreed interest rate, the seller has no obligation to pay.

As the world's leading online education brand of financial certificate, Gao Dun Finance integrates the core resources of financial education, and has platform resources such as Gao Dun online school, open class, online live broadcast, website alliance, financial question bank, Gao Dun tribal accounting forum and APP client. To provide quality services and comprehensive solutions for people in the global financial and economic circles.

Gao Dun Online School will always adhere to the corporate mission of "achieving young dreams and creating new business civilization", speed up the internationalization process and build a world-class financial online learning platform!

Gao Dun wishes you a happy life! If you have any questions, please feel free to ask Gao Dun Enterprise Knowledge Platform!