Commercial Bank Liquidity Risk Management Research

In the long term, on the strong backing of national credit, the problem of liquidity risk in China's commercial banks has not been raised the issue of widespread concerns. However, with the gradual transition our financial system from planning status to marketing status, China's commercial banks have expanded their businesses in quantity rapidly, however in terms of quality, many problems have been gradually exposed as well, where the problems like the expansion of non-performing assets, poor management, simple asset types and narrow financing channels etc. have grown the deposition of liquidity risks in China's commercial banks. When look back on the present status of China's commercial banks to liquidity risk management, although the government and financial institutions have taken various measures to solve the financial problems and resolve financial risks, there are still many deficiencies in China's commercial bank liquidity risk management. Not only the external manage environment needs to be improved but also the internal control mechanism in commercial banks needs to be perfected, the liquidity risk management in commercial banks is still in the growing period. Today, the globalization of world economy has been increasingly clear, the linkages between finance and economy are far closer than before, as the result, the impacts of their interaction are more far-reaching, the global financial crisis derived from U.S. subprime-loan crisis show us that in the open economy, exchange rates, international capital flows and other factors can cause great impact on economy and finance. As a developing economic giant, the impact from international economic and financial situation change on China's domestic economic and financial environment will be deeper and deeper. This process may be accelerated, especially in the present situations that China's accession to the WTO is facing strong competition from foreign financial industries and our capital project is opening gradually. The long run, foster financial institutions with strong competition is the state's ultimate goal of commercial banks reform. Although it is obviously that commercial banks have a large number of non-performing assets, low capital adequacy ratio as well as improper structure of assets and liabilities, the state's credit guarantee business makes that no real liquidity risk has released. However, with the withdrawal of national credit, and changes in economic status, commercial banks the liquidity risk management will become increasingly important.In the study logic, this dissertation based on the analysis from theory to reality, from external to internal, from the idea of questions to the countermeasures that initiated. After stating the current facts objectively, potential incentives to reveal commercial banks liquidity risk had have been analyzed, with the discover of deficiencies that exist in commercial bank liquidity management, combined with the challenge from liquidity management in open economy, I raise the warning of China's commercial banks liquidity risk concerns, thereby, clarify China's commercial banks should strengthen liquidity risk management, and gave the countermeasures and suggestions correspondingly.In chapter one of this dissertation, I firstly introduced the reason and motivation that I chose to compose my dissertation, then after the literature review, I stated the innovation and dificiency I had during the composition of this dissertation. Then, chapter two begins with the congcepts and characters of the liquidity risk management, which was the second part of the dessertation. According to the concepts of liquitidy and liquidity risk, also the relative concept of liquidity risk that Basel II made, I analysed the new characters of global commercial banks risk management in this financial crisis. Chapter there of the artile is the theoretical approach on the liquidity risk in commercial banks, which is the theory base of liquidity risk management in commercial banks, In chapter four, basing on the theoretical analyse, I did the quantitative ananlyce on liquidity risk management of commercial bank. In the fifth part of this artcle, I tried to compose a liquidity risk management framework that suits for Chinese commercial banks from three aspects that are liquidity risk management organization structure, programn structure and supporting structure. In the sixth part, from the global point of view, I fistly stated the experiences of liquidity risk management in different period and different financial environment, then basing on Basel II, summarized new experiences of liquidity risk management in advanced countries and new market countries, and gave further analyce on the developing trend of liquidity risk managent of global commercial banks, from which, summerised experiences that benefits China. In the last chapter of this dissertation, basing on the previous analyces on the statement of concepts, measures and management methods, etc. of liquidity risk I gave the advices on building the liquidity risk management framework, and drew the conclusions relative to the reality in China.