Research On The Liquidity Of China 's Commercial Banks Under The Financial Development Of Internet

The liquidity risk of commercial bank, whose outbreak issudden and highly contagious, is a complex problem involves a wide range of factors.It not only be affected by external macroeconomic fluctuation or policy factors, but also subject to financial market environment and internal operating conditions.The development of Internet banking made great waves in the banking industry. Traditional banksare gradually losing the attraction to individuals and small businessesbecause of its shortage in convenience,profitability and entry criteria. It has been showing a trend of fluctuations in debt structure stability, profits quantity and quality of assets quality.This paper analysis the mechanism through which internet banking affect the commercial banks’ liquidity, thenwe made an empirically analysis by using the semiannual data of 16 listed banksfrom 2006 to 2015 years. We found thatthe deposit massive volatility and the deterioration of asset quality caused by Internet banking is the sources of current commercial bank liquidity hazard.Based on the results of the empirical analysis, weused scenario stress test to examine commercial banks’ reaction in debt structure changing and asset quality deterioration, assuming that internet banking will have a further development.The test results show that the commercial banks, which havelower non-interest-income facing agreater impact of internet banking. Their liquidity level declined faster. Commercial banks under the impact of the Internet Financial constantly adjust operating structure, expansion the intermediate business ratio leads to the reduce of asset- liability-mismatch,made it the most effective means to achieve liquidity long-term stability.Based on above empirical analysis and pressure test, the author thinks that, the easing level of liquidity currently is not the symbolof promotionof risk prevention’s level, but more relieson the positive policy bought by macroeconomics’ slowdown. The liquidity risk of commercial banks under the development of Internet bankingshould not be underestimated. Commercial banks should change liquidity management ideasas soon as possible.Combining emergency treatment and advance prevention. Through establishingliquidity stress testing system, which conform to China’s banking risk characteristics and operating conditions, and strengthen the innovation of business model and product system to reduces the probability of liquidity risk.