Abstract: From the model of the value of bank equity,we derive the expression of the interest rate elasticity of bank equity,which is an indicator regarded as the measure of a bank’s interest rate risk exposure,and conclude the relation of the indicator and some related variables.Form the sense that the bank to manage and control it’s interest rate risk,the significance of our researches lies in that we can quantify the level of interest rate risk exposure at any time and implicitly predict the forward rate,and what’s more,we find a method by which we can reduce the interest rate elasticity of bank equity so as to reduce the level of interest rate risk exposure.

Key words: bank, interest rate risk, value of equity, interest rate elasticity of equity