China Commercial Bank Liquidity Management

Liquidity risk that mainly causes by term mismatch is hard-core risk faced by commercial bank. A well-handled bank usually can deal with liquidity emergency in a good time. In the movement of financial development, urgent challenge confronted by China commercial bank is liquidity problem with out government's safeguard. This article compiles large numbers of datasheet from central bank and listed bank. Demonstration indicates that commercial bank in our country have unsubstantial liquidity management. I find causes of weakness on second thoughts. Severe liquidity problem in China commercial bank is a representation of faulty financial environment. Both financial organization and regulatory commission need dedicate themselves to perfect liquidity management system. In the end, I use advanced liquidity strategies in developed countries for reference and make several suggestions to improve China commercial bank liquidity management.