The Research On The Impact Of Changes In The Depos-It Reserve Ratio On The Liquidity Of Commercial Banks Of China

The statutory deposit reserve policy is one of the three major tools of our monetary authorities to implement monetary policy. For the macroeconomic regulation and control, the deposit reserve policy is a medicine. It has quick effect, convenient operation and other advantages. But its violent effect also easily lead to economical and financial shocks. Because of this, the deposit reserve policy is of a weakening trend in most western countries.In some countries, the reserve ratio is reduced to zero, some countries or even cancel the reserve policy. In our country, the development of the socialist market economy with Chinese characteristics weaken the negative effect of the deposit reserve policy, its positive effect dominates, so it is the people’s Bank of China frequent operation. With the gradually frequent use of the deposit reserve policy, it is more and more important for the economy. At present, the liquidity fluctuation of commercial banks is relatively high, the supervision and management of liquidity in the banking system is still not perfect.The research on how to affect the liquidity of commercial banks in China to the statutory deposit reserve rate adjustment with very important significance to improve the operation and management of commercial banks and to promote the effective use of monetary policy.For a long time, on the use of the deposit reserve policy application, each sticks to his argument in academic circles, there is no unified view. In this paper, based on the theoretical analysis of the statutory deposit reserve policy and the liquidity of commercial banks, starts from the current situation of the liquidity of China’s reserve system and the bank system, though the analysis of a large number of data, In the new economic situation at home and abroad, do the research and analysis on how the frequent adjustment of the deposit reserve ratio in impact our country commercial bank liquidity, how is the influence degree, what is the effect of directionThe paper is divided into five parts:The first part is the introduction. In this part, the author briefly introduces the research background and research significance, summarizes the domestic and foreign scholars on the deposit reserve system and the research situation of the liquidity of commercial banks, puts forward the basic framework and he research methods of this paper. The second part is the theory research on the liquidity of commercial banks and the statutory deposit reserve policy. This is the theoretical basis the of full text, through the presentation of this part, we can understand the definition of commercial banks liquidity and some measure of its main index; understand the basic connotation, the analysis on the role of the deposit reserve policy as well as the advantages and disadvantages. This part also summarizes on how reserve changes affect the liquidity in the banking system. The third part is based on China’s current economic development situation, describes specifically of the establishment and the specific content of the reserve system in China, analyses the regulation of the reserve system since its inception, sums up the reasons for the frequently changes of deposit reserve rate. And though a lot of data collection, judges the liquidity situation at the present stage of China’s commercial banks. The fourth part is the empirical analysis, do the research on the impact of deposit reserves policy to our country commercial bank liquidity, collects the data from the website of the people’s Bank and the annual report of listed banks, by using the software Eviews6.0, analyses the deposit reserve ratio and the ratio of loan to deposit these two indicators though unit-root test, cointegration test, Granger causality test and establishment of the impulse response function, draws a conclusion that there is a stable long-term relationship of the Deposit Reserve Policy and the liquidity of commercial banks in China. Both the reserve policy and commercial banks are reciprocal causation, interaction, and mutual influence. The fifth part is the conclusions and policy recommendations. This part summarizes the paper, based on the analysis of several fronts, puts forward the concrete policy recommendations on how to reform the legal deposit reserve system, how to improve the management of the liquidity of commercial banks, how to improve the external environment of the two.