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Quantitative Analysis Of China's Commercial Banks' Liquidity Management

Posted on:2004-06-28Degree:MasterType:Thesis
Country:ChinaCandidate:K B LiFull Text:PDF
GTID:2206360095951108Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
All commercial banks are faced with a same matter-Liquidity Management, But Liquidity Management is not a simple problem. Commercial banks don't get a method to cope with it very well. Compared with the commercial banks in advanced country, the commercial banks in our country have some china characteristics. These characteristics influence the choice of the method of Liquidity Management, Certainly they influence the thought of quantitative analysis of Liquidity Management too.Although in these years, all kind of reforms have been deepening, and financial market has been evolving, and the instruments of currency policy have been increasing, one point is that the demand of fund still is not sensitive to interest rate in our country because the reforms in national enterprise have not finished and soft restriction in budget still exists; Another point is that the commercial banks in our country have no right to decide the price of fund because of administration regulation of interest rate. Due to the reasons mentioned above, the variation of interest rate has little influence to the Liquidity Management of commercial banks in our country. This is a big difference between commercial banks in our country and commercial banks in advanced country.Compared with the balance sheet of commercial banks in advanced country, the items in balance sheet of china Commercial Banks are different: China commercial banks have no Certificate of Deposits; China commercial banks have little asset for trade purpose; China commercial banks have no asset securitization, and their asset have little Liquidity; China commercial banks give customers many options in treaty, and the customers have a higher default tendency; All the difference influences the analysis method of Liquidity Management.The characteristics of china commercial banks decide that we can not copy the method of Liquidity Management in advanced country-Actually, commercial banks in advanced country don't have a perfect method of LiquidityManagement too. The correct thought in china commercial banks should be: The bank arranges its asset according to its ability to collect deposits over a long period of time, and reduce reserve as possible as it can to increase the income in a short period of time; The money borrowed from the Interbank lending and borrowing market can only be used to smooth the wave of cash demand in a short period of time; When the bank arrange its asset and liability for the purpose of Liquidity Management, the bank must consider income and interest risk all together.The title of this thesis is Quantitative analysis of Liquidity Management about china commercial banks. When we analyze liquidity quantitatively, the thought of Liquidity Management decide the objects of analysis, and when we choose the analysis method, we should consider the characteristics.The objects in this thesis are three items: the first is the method of measuring the demand of reserve; the second is the method of forecasting deposit's increment; the third is how to arrange the asset and liability under all kinds of restriction. The contribution of this thesis is that, according to the characteristics of china commercial banks, the thesis gives a set of quantitative analysis methods, and demonstrates the method's correctness from theoretical and practical view. This thesis doesn't refer to the process and organization structure about Liquidity Management.The first chapter in this thesis discusses the concepts of Liquidity Management. The main contents are the significance and objects of Liquidity Management, the supply and demand of Liquidity, the changing process of Liquidity Management, the common indexes of measuring liquidity. This chapter is the summary of Liquidity Management. The basic concepts in this chapter are prepare for thoroughly study later.The second chapter studies the indexes of measuring liquidity thoroughly. After pointing out the disadvantage of the indexes in existence, according to the practicality in china commercial bank, four comprehen...
Keywords/Search Tags:Liquidity Management, Index of Measuring Liquidity, Decision-Making Model
PDF Full Text Request
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