Research On Liquidity Risk Management Of Chinese Joint-stock Commercial Bank

Liquidity risk is one of the major risks that faced by commercial banks, and the management of which has always been one of the most important and difficult issues in the risk-management research fields of worldwide commercial banks. Not only would it bring huge credit and economic losses of commercial banks, as if the liquidity risk issues were not well managed, but also it could conduce commercial banks to bankruptcy. Once the risk spread in banking industry and even in manufacturing and distributing industries, which results in "Domino" effect consequently, the national economy could be in liquidity crisis unfortunately, and finally regional, national or even global financial & economic crisis and social instability would happen probably. To some extent, liquidity risk management is the vital important task of the risk-management issues in commercial banking industry.The major research subject of this paper is the liquidity risk management in Chinese commercial banking industry, with the example of Shanghai Pudong Development Bank Co. Ltd. (SPDB), and drawing the western theory of liquidity risk management to deeply explore the new developing path for strengthening the liquidity risk management under the process of the economic transformation and its financial circumstance. Aiming to make some suggestions on the stable and healthy economic development and on promoting management abilities of Chinese commercial banks, of which focusing fields including handling commercial bank liquidity risks, dredging transition mechanism of currency policy, and enhancing the stability of financial market.By reviewing the theory and speech strategy of liquidity risk management of commercial banks, this paper tries to elucidate BASEL with the classification, reasons and measures of risk management of commercial banks, and risk management in Europe, and to introduce some examples of liquidity risk management in foreign commercial banks and the current situation of risk management of Chinese commercial banks. Based on the academic analysis, the 1st Practical Analysis argues the origin mechanism of liquidity risk management from its endogenous mechanism, exogenous mechanism and transmitting mechanism. And the 2nd Practical Analysis analyses statistical analysis on the liquidity risk management of Chinese commercial banks, with the example of SPDB, and fatherly to set up grey system for SPDB liquidity risk management, and to take relational analysis and G (1,1) Grey forecasting model analysis, respectively, by virtue of which we predict that the liquidity gap of SPDB by December 2013 would be 495.51 billion RMB, and in the coming a few years the asset-liability structure could in faster development comparing with the forecasting number. Finally, this paper gives some suggestions on promoting and perfecting the risk management of Chinese banking industry.