The Influence Of Electronic Money On The Demand Of Commercial Banks' Liquidity

With the prosperity of the network economy and the upgrade of the payment clearing system of the bank, the use ofelectronic money is expanding gradually. The bank-card business accounted for26.9%in the non-cash payment system, increased by22.4%. That is to say, electronic money, the main form of which is bank-cards in our country, is exerting growing magnificent impact on economy. Electronic money has good divisibility; it is convenient to use and to save the cost of circulation. With the expansion of the e-money scale, the demand for liquidity in the ordinary course of operating in commercial banks (issuer of cards) will be influenced to a large extent.This article references the three motives assumptions, which are transaction, prevention and speculative motives, concerning "liquidity preference" in the Keynesian’s demand theory. Then, this article analyzes the variation of the liquidity needs of the commercial banks under the conditions of the existing of electronic money from the three aspects separately. In this paper, I use quarterly time-series data, range from the first quarter of2005to the third quarter of2012, of the commercial banks’balance sheet. Before building the VAR model, it needs to take the Cointegration test to be sure there exist long-time relationship among those time-series variables. Then, I adopt the Generalized-impulse Response function to analyze the results of the model, and make conclusion that the generation of electronic money can exert some impact on the commercial banks:the appearance of electronic money could reduce the transaction and speculative liquidity needs of the commercial banks, and will increase the preventing liquidity needs such as the statutory deposit reserves.