Study On The Liquidity Changes Of The Rural Cooperative Financial Institutions

After the international financial crisis in2008, along with the bankruptcy or merger and reorganization of several large financial institutions, liquidity risk has once again become the focus of attention. The rural cooperative financial institutions, as the main force support of the "Three Agriculture", due to its particularity in the overall banking financial institutions, is easier to form the liquidity risk. At present, rural cooperative financial institutions’ liquidity management is in a stage administered by the institutions themselves and the industry management departments in common, which has a series of problems such as the indifferent consciousness of the management, the laggard concept of the management, the unclear objectives of the management, the incomplete mechanism of the management and the low level of the management. The paper takes Baoji City of Shanxi Province as an example, uses the mobility indicators method,selects6liquidity indicators: the excess reserve ratio, loan ratio, liquidity ratio, deposit structure, the proportion of long-term loans, total loans and total assets ratio, conducts a comprehensive analysis and evaluation on the liquidity position of the rural cooperative financial institutions in Baoji City from2007to2011. The analysis results show that the mobility changes of the past five years of Baoji City of the rural cooperative financial institutions own the following characteristics: the overall liquidity is adequate, there is a strong correlation between liquidity changes and economic cycles andmonetary policies, some indicators are abnormal, and there are some mobility potentialrisks. As to the problems in the liquidity management, the paper proposes six policyrecommendations to strengthen the liquidity management, that is, strengthening the liquidity management capabilities of the legal institutions and the industry management departments synchronously, establishing the correct liquidity management concepts and enhancing the risk awareness, improving asset-liability management capabilities and achieving the structural equilibrium and security, establishing a sound liquidity risk management system, building the liquidity risk monitoring and early warning system, enhancing the technological level of liquidity risk management.