Study Of State Treasury Cash Management Model In China

As China's rapid growth of fiscal revenue, the state treasury cash balance will continue to increase and become a substantial number. The state treasury cash management has been paid more and more attention to and the problem of the use of state treasury cash has also been highlighted in the background of centralized treasury payment system's improvement and development. Accordingly, our treasury cash management model is a very practical issue of practical significance.In this paper, the state treasury cash management problems can be divided into safe model and efficiency model. It is necessary to ensure the safety of the state treasury cash, at the same time greatly enhancing efficiency in the use of cash in the state treasury to realize China's treasury cash effective management of the building of a harmonious model of safety and efficiency.First, the paper make a definition of the concept and scope of state treasury cash management from the theory ,and analyze China's treasury cash management model status. In the opinions of writer, China is now in the treasury cash management embryonic stage whether from the security or efficiency terms. We are turning from the state treasury by non-interest-bearing deposit and admission charge stored in a single central bank to the gradual strengthening of state treasury cash. However, at the present, China's existing treasury cash management model is still a strong bias towards the extreme security model typical. It is pointed out that this model may guarantee the absolute security of the state treasury funds with high safety index, but this totally safe mode of the national treasury cash management makes the funds deposition and could not be reasonable used so as to affect the efficiency of the state treasury cash.Accordingly, the paper divide the state treasury cash management model of the United Kingdom, Australia, the United States, Japan, New Zealand, France, Italy and other countries and regions to three models including early warning control of the cash-flow model, debt management control mode and the internal control regulatory approach from security angle. It can also be divided to the management model for the market, the central bank completely by treasury justification model from the state treasury efficiency and profitability angle. In the light of these countries' leading experiences in the management of the state treasury cash, the China's reasonable treasury cash management model is designed. Author thinks that the realization of China's treasury cash management model optimization should be focused on greatly improving efficiency in the use of cash in the state treasury under ensuring security of the state treasury cash. It is necessary to change security model and establish a new security system the state treasury cash to guarantee the safety of cash in the state treasury. First of all, according to the amended Miller-Orr model we should determine the end of the holders of treasury funds for retirement security to ensure that substantial funds outside the state treasury the needs of moving. Meanwhile, we must establish risk early warning mechanism by using probability distribution of state funds means the frequency of the occurrence and deal with different sectors of the financial risk. In addition, we also should strengthen the supervision of the state treasury management and internal control efforts by the internal personnel management, approval procedures, systems and internal network building .In the use of cash in strengthening the efficiency of the state treasury, it should be clear the relations between Central Bank and Ministry of Finance and establish a reward and punishment mechanism of this agency. It can be better and clear demarcation the rights and responsibilities. Try to be phased inventory balance of the state treasury cash into the market. The first is to deposit in the state treasury cash balance of commercial banks, and the second is to be invested some money market liquidity strong, the relative safety of higher investment. Establish a scientific and reasonable cash flow forecasting system.The article divide the treasury cash management model into two aspects of safety and efficiency and in-depth analysis of the world's treasury cash management experience in more advanced countries. With China's specific national conditions, China put forward in ensuring security of the state treasury cash management under the premise improve the efficiency of the state treasury cash management to build of a harmonious model of the specific approach. In the last part of the paper, writer attempts to use the revised model Miller-Orr and introduce large amounts of data to determine a reasonable treasury at the end of the retirement funds for security.