Research On The Liquidity Surplus In China's Commercial Banks

With the global liquidity surplus and economical imbalance, China also enters a liquidity surplus time. China's liquidity surplus is mainly appears in the commercial banks. The performance is expanding difference between deposits and loans, high excess reserve and money market's interest rate is low than deposit's interest rate and so on.. Excess liquidity although can cause the bank avoid the liquidity risk, but more is bringing many negative effects to the bank. With the liquidity surplus more and more serious starting in 2004, research on the liquidity surplus in China's commercial banks, is good for department concerned and commercial banks recognize the correct situation, take the suitable measure to unblock liquidity surplus, maintenance the economics stably.In the paper, the author first studies the papers of the liquidity surplus written by other researchers. Then introduce theory about liquidity and liquidity surplus. Pointing out that China's liquidity surplus is on quantity, not the ability surplus. After that the article has carried on the introduction to the most commonly management method about liquidity in west commercial banks, moreover unified the special environment which our country commercial bank faced, proposed the standard of judgment liquidity, and has made the basis judgment by this. After analyzed negative effects bringing by this liquidity surplus, using theoretical analysis and empirical analysis on the cause of excess liquidity. Taking into account the data collection, the paper puts some demonstration on three variables using the data of 2002-2008.Using the most common method of ADF unit root test and cointegration test.It turns out that the three variables truly play important part in the liquidity surplus. Occupying Foreign exchange is the mainly factor.Then, according to the theoretical analysis and empirical analysis, the paper puts forward some countermeasures to unblock liquidity surplus in our country's commerc -ial banks. Because the liquidity surplus present foreign exchange system and commercial banks'liquidity management's flaw in our country, so the effective countermeasures should be the followings: reform the foreign exchange system; adjusting the liquidity management strategy, and so on.