Research On Liquidity Risk Management Of The Commercial Bank

The commercial bank's liquidity risk means the possibility that the commercial bank can not meet it's client's liquidity demand in time under the circumstances of not important cost or losing capital value. The liquidity risk management plays a very important role in commercial bank's operation and management. Once liquidity risk happens, it would at least affect the commercial bank's normal operational activity or even lead to bank's bankruptcy. The severe liquidity crisis might arise financial crisis, make the society turbulent, affect the development of national economy and disturb people's quiet life. Thus, the management of liquidity risk has been a very important work for every country's financial supervisors and commercial bank's management.First of all, this paper explained the concept of commercial bank liquidity risk, analyzed the cause of commercial bank liquidity, then gave some examples analyze the necessarily of liquidity risk management of commercial bank, discussed the difference and the relationship between the Western asset-liability management theory and liquidity risk management, explored the target of the liquidity risk on financial index and market information index, which provided the theoretical foundation for analysis liquidity risk management further.Secondly, this paper took up remarked the development process of liquidity risk management of China commercial bank and at present management of assets and liabilities ratios. The data shows that there was still liquidity risk existing of China commercial bank.Finally, this paper pointed the deficiencies of liquidity risk management in China commercial bank, explained the conditionality factor of liquidity risk management. This paper put forward some specific reform measures to improve liquidity risk management mechanism of commercial bankThe innovation of this paper is from 2 aspects. Firstly is the innovation of content. Taking the research on liquidity management of the commercial bank as a whole, which has very strong theoretical value and realistic meaning, and also puts up a higher platform for the further investigation of liquidity management theory of thecommercial bank. Secondly is the innovation of method. This paper analyzes the reasons that China commercial bank lacks the overall and effective liquidity risk management, and has put forward effectual reform methods including overall ideas and concrete measures, which provides convenience for the commercial bank to carry out real and effective liquidity risk management.