There are four main market risks: interest rate risk, exchange rate risk, equity risk and commodity price risk.

(1) Interest rate risk: the risk that commercial banks' assets will shrink and their income will change due to interest rate fluctuations.

(2) Exchange rate risk: the risk of bank losses caused by exchange rate changes.

(3) Equity risk: the risk of bank losses caused by price changes in the stock market.

(4) Commodity price risk: the risk of bank losses caused by changes in commodity prices.

Market risk, also known as undivided risk or systematic risk, refers to the risk that all securities in the market suffer economic losses due to some factors. This kind of risk affects all securities, so it cannot be dispersed through portfolio, mainly including economic cycle risk, purchasing power risk and market interest rate risk.

The realization of market risk includes: the risk brought by the uncertainty of market demand; The risk brought by the uncertainty of market price; Risks brought by the uncertainty of market acceptance time;

Risks brought by not changing the marketing model.

The reasons for the market risk are: (1) the acceleration of technological progress. (2) New competitors join. (3) With the intensification of market competition, the price of the export products of the buyer's monopoly projects in the export market has dropped significantly; Or the input price required for the seller to monopolize the project in the market has risen sharply. This fierce price competition leads to the decrease of the expected income of the project products. (4) The sudden change of political and economic conditions at home and abroad has caused fierce market shocks.

The measurement methods of market risk include: commercial banks can use different methods or models to measure different types of market risks in bank accounts and trading accounts. The measurement methods of market risk include gap analysis, duration analysis, foreign exchange exposure analysis, sensitivity analysis, scenario analysis and using internal models to calculate the value at risk. Commercial banks should fully realize the advantages and limitations of different measurement methods of market risk, supplemented by other analytical means such as stress testing.