Context Of Excess Liquidity Of Commercial Banks In Financial Difficulties And Solve Path :2001-2008,

Liquidity has always been one of the themes of commercial banks management. Modern commercial banks has to consider the equilibrium among safety, liquidity and profitability as the basic aim in daily operations. From 2001 to 2008 period, A variety of signs that phenomenon of excess liquidity in China's commercial banking system, and excess liquidity has become the difficult problem faced by China's commercial banks, which decreases the profitability of commercial banks and increases operational risks of commercial banks.Firstly, the article reviews the literature concerning with the liquidity of commercial banks. Secondly, the article generally describes the performance of the excess liquidity of commercial banks and empirically test the factors that influences the excess liquidity of commercial banks. At the basis of the above analysis, the article concludes the main reason for the excess liquidity of commercial banks is endogenous, that is, China's high household savings instead of exchange position is the main reason for the excess liquidity of commercial banks.According to the analysis of the reason for the excess liquidity of commercial banks, the article research the impact of comm??al banks' operation influenced by the excess liquidity. At the background of the excess liquidity, the profit of commercial banks shrink and the risk of operation increase because of the single profit model, the homogenization of operation and the bank-led financial system. At the same time, because of the mutual promotion effect of excess liquidity and excess production capacity, excess liquidity may lead to excess production capacity. As a result, the adjustment of national industrial policy might bring about the risk of commercial banks. Based on the analysis of operation difficulties of commercial banks, the contents of the countermeasures in the article firstly concludes the lessons of the commercial banks' operation from Japan's financial crisis during 90's, 20th century, then the article put forward the solutions to the operation difficulties of commercial banks at the background of the excess liquidity, that is, First of all, commercial banks must commit to change business thinking, broaden the operating channels and carry out the differentia operations. Secondly, commercial banks should be free from the restraint of independent operations. At last, the most important solutions to excess liquidity of commercial bank is to depress the rate of household savings by promoting foreign exchange reform, reducing trade surplus, achieving "equilibrium management" and expanding the social security system..