Empirical Research On The Liquidity Of Chinese Listed Commercial Banks

The liquidity is very important to the commercial banks management. The soundoperation of the bank is determined by liquidity management. When the liquidity ofcommercial banks is seriously inadequate, it may lead to a wave of a run, and even affectthe entire financial system have serious hazards. This issue analyses bank’s liquidity andits influencing factors from the microscopic point of view. And listed banks are dividedinto three categories: large banks, joint-stock banks and listed city commercial banks.This issue analyses listed bank liquidity from the definition of liquidity, the statusquo and problems. Because there is a contradiction between different indicators, and itleads to a comprehensive measurement of listed banks’ liquidity. The empirical sectionincludes the level of liquidity and the analysis of influential factors.In measuring listed bank’s liquidity, this issue uses the2007-2011data of16listedbanks with principal component analysis to construct an index which reflects the level oflisted bank’s liquidity, and analyses differences of the three groups of listed banks. Theconclusion is that that the highest liquidity of listed bank is city commercial banks,followed by the large commercial banks, the last is joint-stock bank liquidity.The next part analyses the influencing factors of listed banks’ liquidity, including theexternal and internal factors. The panel data model and the data of16listed banks duringthe period of2007-2011are used in this analysis. Concluded that the comprehensivestronger of a bank is, the better liquidity the bank has, and the city commercial bankshave the most influential factors.At last, based on conclusion this paper had, providing the improvement of the listedbank’s liquidity management. I think through this paper’s research, we can put forwardsome countermeasures to improve the level of listed commercial banks’ liquiditymanagement.