Study On Liquidity Risk Integrated Evaluation Model And Implementation For Commercial Banks

Development with the mixed business of financial industry and entrance of foreign banks, the financial industry of China is facing the austere competing situation. In order to adapt to the situation the bank industry as the main force of the financial industry of China must strengthen the consciousness of risk management, improve the level of risk management and upgrade the comprehensive competitiveness. Therefore, as the effective means of upgrading the comprehensive competitiveness, the liquidity risk management becomes more and more important in commercial banks' operation management.In order to research and evaluate the liquidity risk of commercial banks in China, this paper lucubrated the liquidity risk step by step. The main contents of research in this paper are the following: Firstly this paper expounded the concepts and characters of risk and bank risk. Then it brought forward the concept and characters of the liquidity risk and analyzed the objectives and significance of liquidity risk management especially in the electric and networked condition. Secondly it reviewed the domestic and foreign theories of liquidity risk management, analyzing their times background and the advantages and shortcomings of each theory. Next it summed up various methods of liquidity risk management, providing the basic for establishing the integrated evaluation model for liquidity risk management. Thirdly it qualitatively analyzed the liquidity risk management situation and its causes in commercial banks of China and brought forward the reconstitute conceive of liquidity risk management according to liquidity risk management practice overseas. Fourthly it designed the structure of the liquidity risk management system and established two indexes systems: one for monitoring the liquidity demand and supply and the other for evaluating the asset allocation, to establish the integrated evaluation model for liquidity risk management based on GM(1,1) and Back-Propagation Neural Network by utilizing the concepts and characters of liquidity risk and catching the essence of liquidity risk management——liquidity gap management and asset allocation. Fifthly it carried out the empirical proof-test to verify the effect of the integrated evaluation model for liquidity risk management and the empirical results indicated that the integrated evaluation model had higher veracity and reliability in more higher confidential level. Then it put forward the improved advice for the evaluation model for asset allocation. Finally it reviewed the theories and methods of liquidity risk management, analyzed the advantages and shortcomings of the integrated evaluation model and brought forward the improved advices for the model.Any enterprise needs liquidity, but the liquidity is the frailest in commercial banks. Any enterprise needs credit, but the credit is the most essential to commercial banks. Therefore, it is the most significant that strengthening the liquidity risk management and improving their own comprehensive competitiveness for commercial banks in China to adapt the new competitive situation and march toward the internationalization.