Theoretical And Empirical Of Liquidity Of Bank Assets And Banking Stability

In recent years, in the influence of subprime crisis, the finance around the world stepped intothe crisis. Though, the subprime crises has not melted away, the world’s finance was shocked bythe European debt. In the environment full of crisis and great complexity, our government is netby the great challenge. Whether the economic of our country can develop in the fast pace or notis the doubt for everyone. At present, the Banking stability plays a vital role. Because it can notonly affect the stability of finance, but also influence the development of the economic of thecountry.Our government has taken great action to resist an attack of economic crisis, after that, oureconomic has gradual recovered. Though, during he initial stage of12th Five-Year Plan, weshould attach more importance to keep the stability of banking. The problem of liquidity risk hasappeared, accompanied by the rapid growth of our economy. This dissertation will attempt tofigure out the problem and its root which appeared during the development of banking indeveloped countries. Then it can be concluded that the growth of liquidity will not take positiveeffect to the banking stability, no matter situation that a country is in, normal or run crisis. The inthe run crisis, the growth of liquidity could even make negative influence to the stability ofbanking. To test and verify this conclusion, this dissertation also describes the characteristic ofbanking china and data of some commercial banks in China. In the end, on the basis of the dataand verification results, there will be some suggestions for the development of banking in China.