Commercial Bank Liquidity Risk Management Research On The Basis Of The Structure Of Assets And Liabilties

Liquidity risk is an important element among the bank risks management, and it was always existed in the banking system since this system was established. Internationally, the International Committee on Banking Supervision - Basel Committee developed a series of indicators to supervise the bank risks arising from operating, hoping the international banking system could develop healthily and stably. However, in Basel before being enacted, although the risks faced by banks have developed indicators to measure, but the liquidity risk is not given enough attention, so that liquidity risk has become a risk which banking practitioners pay the least attention to. With the continuous development of the international economy, the financial crisis sweeping the world in 2008. In this crisis, the collapse of a number of international banks led to the recognition of liquidity risk, and made the liquidity regulatory for banks step into a new dimension. After the financial crisis, the Basel Committee developed a new Basel Accords - "Baselâ…¢" to regulate the bank's capital adequacy ratio and core capital adequacy ratio, in order to guide the banks to enhance the quality of capital against the liquidity risks. The Basel Committee also developed a series of new, special indicators to monitor the national banking sector's liquidity risk from all aspects. All the series of movements prove that the liquidity risk have gradually been growing attention, and also reflect the importance of the liquidity risk in the banking operations.In China, with the continuous economic development, China's banking system is continually self-improvement. Since 2007, China began to fully open to foreign banks, resulting in China's banking system had to face with more competition. Foreign commercial banks have the mature liquidity risk control system. China's banking sector's liquidity risk management research started late, but also constantly learn the liquidity risk control manners from the other countries and get some results. This paper is mainly based on bank's balance sheet structure, analyzing China's various types of bank's liquidity risk analysis of the status from two aspects, and then gives the corresponding policy recommendations.First, we use liquidity ratios to analyze different types of banks. Depending on the nature of our bank and the bank's size, we divide China's major commercial banks into state-owned commercial banks, joint-stock commercial banks and city commercial banks. Although at the end of 2010, China's rural commercial banks has reached 85, because the scale of rural commercial banks are generally small, the rural commercial banks could process their business in a small geographical area, and the openness of the data of the China's rural commercial banks is not very high, resulting in the data is difficult to collect. For these reasons, in this article does not discuss the case of commercial banks in rural areas. Liquidity ratios in the selection, we use the loan-deposit ratio, loans to total assets ratio, cash assets to total assets ratio, non-performing loans ratio, capital adequacy ratio, equity to total assets ratio, liquidity ratio of a total of seven indicators from different areas to reflect different types of commercial bank liquidity risk status and recent trends.Secondly, we study the maturity mismatch of China's banking problems. First, from a macro point of view, we analyze how the term structure of interest rates affects the bank's maturity mismatch. Then from the microscopic point of view, we analyze the maturity mismatch situation about different types of commercial bank. Eventually we could come to the conclusion that there are more serious maturity mismatch situation in the whole bank system.After the quantitative analysis about the liquidity risk status, we analyze the commercial banks liquidity risk status in Qualitative analysis, so that the analysis will be more comprehensive, and it is also the innovations of this paper.After analyzing the China's banking sector liquidity risk status, we raise some corresponding recommendations for improvement reflecting on the analysis. Hope this could provide some reference to our liquidity risk management in the banking system.