State-owned Commercial Bank Asset And Liability Management

Since financial reforms were brought out in China 20 years ago, the state-owned commercial banks have a expansion in financial assets and liabilities during this period. With the sharp increase of financial assets gross, the domestic banks are encountering a series of difficulties, such as high ratio of default loans, the slower turnover ratio of funds, the lower profitability, and the weak ability of self-development. Accordingly, the absorption to the foreign advanced management theories is very helpful for comprehensively improving the level of operation and management of the state-owned commercial banks.On the basis of introducing the foreign advanced management experiences and theories, this paper attempts to, from theory to practice, research and find into approaches to perfect the ALM of the state-owned commercial banks.The first part of this paper offers a deeper research on the definition, content, principles, means, purposes and strategy of the ALM. Certainly, it is also essential to forecast the development tendency of ALM.In the second part of the paper, we illustrate the importance of the state-owned commercial banks in Chinese financial system and the necessity of strengthening the ALM in the state-owned commercial banking system. After analysing the current situation of the state-owned banks' ALM and the existing problems of the unclear property rights, the inequilibium of the asset-liability structure, the imperfect risk control system, and the unsatisfactory computer systems for the asset-liability management. The paper analyzes the existing situation and main disadvantages, and gives some suggestion to improve the level of the ALM of the state-owned commercial banks.