Analysis Bank Cash Holding Management Based On Quantity Pattern State Of The Best Cash

As the guarantee for bank's operation, cash holdings could effect payment and clients'degree of satisfaction. But as non-profit asset, too much cash holdings would reduce the efficiency of the use of funds, increase cost as well as risk. Then, on the promise of guarantee of payment, holding a low level of cash holdings becomes important to improve Meticulous Management and to build equity project. On the basis of founding a scientific and reasonable cash flout, the management of cash holding is the most effective way to manage a commercial bank. But for now, cash holding is mostly approved by experience, which is lack of scientific data for theoretical support and so is subjective.Based on quantity pattern state of the best cash holdings, the paper analyses the applicability of cost analysis model, BAT model and Miller-Orr model for the stay of cash holdings of commercial bank. The paper makes sure that the study suits to the assumption of Miller-Orr model, and then builds the cash flout model.This paper taking 26 branches of A State-owned Commercial Banks as the research objects, establish a data storage, use the bank cash float model to calculate the best cash holdings of 26 branches, then compare it with the cash balance in August and September. This paper also analyses the status of the cash management, the reasonableness and effectiveness of the method is proved. In the end, according to the difficulties and problems of cash management, several suggestions are included.Through the application of cash float model, coupled with the reformation of cash management, the adjustment of transferring process, and the all-round assessment of performance, the cost and risk of cash holdings will be controlled effectively, the cost of bank operation will be reduced, the efficiency of cash transfer will be improved, the cash management will be Standardized.