The Empirical Study Of Chinese Commercial Banks’ Liquidity Management

"Liquidity, security, profitability" are the basic principles of the daily operations of the commercial banks and the basis for the existence of them. And the liquidity plays a decisive role in these three principles.Ensuring the adequacy of the liquidity of commercial banks is a guarantee to achieve security and profitability.It is the shortage of liquidity that triggered the subprime crisis in2007.And it made liquidity management become the most critical requirement of Basel Ⅲ in2010.Basel Ⅲ requires that the commercial banks should make liquidity management be the most important role in the daily operations, and ensures the importance of commercial bank liquidity management and measurement.In recent years, the momentum of inflation in macro economy still maintains, but the capital of the banking system banks often face a tense situation at the same time.With the liquidity support from the central bank repeatedly, the liquidity shortages in the banking system were eased every time.But the serious liquidity risk lying in the banking system has never been eliminated.The new government is intended to promote economic restructuring rapidly. So the central bank has been reducing liquidity support to the market since2013.The outbreaking of "money shortage" event in June2013fully exposed the deficiencies inherent in liquidity management in our banking system.After the "money shortage" incident,most of the documents attributed the causes to the changes in the macro-liquidity,such as lack of saving capacity, the impact of the Internet financing, the outflow of domestic capital.Changes in the external environment result in a very significant impact,but the fundamental reason is the deficiencies of commercial bank liquidity management.Based on these,this article studies the liquidity management of commercial banks.Firstly, this article analyses changes in Chinese macro liquidity before "money shortage" event. Secondly, this article analyses the status of the business associated with interbank lending market.The next this article analyses indicator of liquidity of commercial banks,and find the overall tightening of liquidity.Then this article sorts out the duration of assets and liabilities based on matching data from annual and semiannual reports of Bank of NB in the last two years,comparatively analyses of its mismatch of assets and liabilities in the project period.Finally, it is the empirical analysis on SHIBOR, commercial banks’ liquidity indicators and indicators of the term structure of assets and liabilities.Term structure of assets and liabilities can significantly affect the interbank rates trend through the guidance of liquidity;then considering the factors affecting the commercial banks’ liquidity management with the panel data.Innovation point of this article is not simply pointing out that today’s "money shortage" problem comes from commercial banks liquidity, but a more in-depth analysis pointing out that the fundamental cause from the shortage of the commercial bank asset liability management, and gives forward corresponding suggestions.