Liquidity Risk Management Of Commercial Banks In China Under The Background Of Financial Disintermediation

Compared with the commercial bank’s other risk, the harm of liquidity risk is extremely strong, and not handling well may lead to the collapse of entire financial system. With the improvement of the financial markets, financial disintermediation trend will be reinforced, which will challenge commercial bank business development. Savings deposits in commercial banks will be shunt in large number, and the enterprise will less depend on the commercial banks.Financial disintermediation makes the commercial banks liquidity risk more complicated and hierarchical. Researching commercial bank liquidity risk management is under the background of financial disintermediation is also the urgent need to improve the competitiveness of the commercial banks. It has important theoretical and practical significance. On the one hand, there are many researches on commercial bank liquidity risk management. But there is no systematic study of the influence of financial disintermediation on liquidity of commercial banks, not to mention quantitative analysis and empirical analysis. In this paper, the study can make up for the vacancy, and has a certain theoretical significance. On the other hand, the research on liquidity risk management of commercial bank under the background of financial disintermediation, has the important practical significance to strengthen liquidity risk management, dissolve the risk effectively, and maintain the stability of the financial system.This paper analyses the liquidity risk management under the background of disintermediation from a new perspective by using the method of literature research, empirical analysis, and contrast analysis. The paper focuses on the analysis of China’s current financial disintermediation and the performance of commercial bank liquidity risk. By researching, we found that the financial disintermediation in China is becoming more and more serious. Deposit growth rate reduced 15.61% in 2004 to 13.76% in 2013, RMB loan financing accounted for the ratio decreased from 91.86% in 2003 to 52.04% in 2013, Savings deposits ratio decreased from 49.8% in 2003 to 42.88% in 2013, the financial assets ratio decreased from 96.24% in 2003 to 93.06% in 2013. Commercial banks are facing greater liquidity risk. There are short-term liquidity gap of large commercial banks in China. Active debt ratio is very low. The long-term loan to deposit ratio rose from 93% in 2013 to 141% in 2013. Then the paper analyses influence of financial disintermediation on liquidity of commercial banks by using the empirical method, finding that the savings deposits’ significant impact on the liquidity of commercial banks. Finally, the article puts forward corresponding suggestions on how to effectively strengthen the liquidity risk management from two aspects, which is the innovation and the system construction.