INTEREST RATE POLICY OF COMMERCIAL BANKS: ITS NECESSITY AND IMPORTANCE

This article explores the fundamental role of interest rate policy as a strategic framework for commercial banks in the modern financial landscape. It analyzes the necessity of such policies through the lens of financial intermediation, risk mitigation—specifically interest rate risk—and liquidity management. Furthermore, the paper discusses the importance of interest rate policy in driving profitability, fostering innovation in competitive markets, and serving as a critical link in the transmission of national monetary policy. The findings suggest that in an era of digital finance and global volatility, sophisticated, data-driven interest rate strategies are indispensable for both a bank's internal solvency and broader macroeconomic stability.