Research On Liquidity Risk And Its Management Of Chinese Commercial Banks After Financial Crisis

Liquidity is the basis of commercial banks and it is the assurance of normal and stable operation of commercial banks. Once the liquidity risk turned into reality, it will not only endanger the normal life of residents and enterprises, but also threat the profit, operation and even survival of commercial banks, then eventually affect the entire national economy and even bring international financial crisis. And maintaining a good liquidity position has a positive effect for safety and operating management of commercial banks:it can increase the confidence of market, win a good reputation, ensure that banks have capacity of lending and maintain normal operations and so on.In the21st century, the global economic crisis continues. With Chinese economic growth and dramatic changes of the international economic environment, the important impact of liquidity risk management for the commercial banks are increasingly prominent. Experienced the baptism of the United States subprime mortgage crisis and the European debt crisis, the Chinese government and the central bank have implemented appropriate policies to make Chinese commercial banks perform well and avoid the run and collapse phenomenon. However, at this situation of integration of world economy and frequent financial crisis our commercial banks are in the period of economic change and facing all kinds of pressures and risks. And, as China is gradually opened to foreign banks, competition among commercial banks will become more intense. So, how to enhance commercial banks’liquidity risk management, to reduce the likelihood of their risk of loss, to pursuit greater profit comes into inevitable problems of commercial banks. Meanwhile, our commercial banks is also exposed many deficiencies in terms of liquidity risk management.In the middle of2013, the "money shortage" phenomenon is reflects this point. Investigate its reason, the influence of the external environment is important. For example, the United States plans to withdraw from the quantitative easing monetary policy, resulting in a large number of domestic capital outflows. But it is more important to be noticed that our commercial banks has exposed the problem itself, such as commercial banks’habitual reliance on central bank which causes misjudgment of central bank policy, asset-liability period mismatch, as well as major banking institutions increasing the demand for capital to cope with the mid-year assessment and so on. Although the liquidity risk which this "money shortage" phenomena brings has been controlled to some degree, it does not cause serious damage to the real economy. But it reflects a situation of capital structural tension that the shortage of funds exists between banks while overall money supply is abundant which indicates that our commercial banks’liquidity risk management in the post-crisis era do have many problems.So we should improve the development of Chinese financial market and put forward the theory of liquidity risk management in line with country’s actual condition while we learn the liquidity risk management theory of western countries. At the same time, we should recognize the importance of liquidity risk management and make it an important long-term work in the daily management of banks.This paper mainly study overall and deep on the current situation and characteristics, influencing factors and problems of our commercial banks liquidity risk management through qualitative analysis and quantitative analysis and theory and practical method. The paper is divided into six parts.The first part describes the background and significance of this paper, comprehensively summarizes and reviews the relevant researches at home and abroad, clarifies the research status of liquidity risk management in our country, and put forward the research contents, research methods and research framework.The second part discusses the liquidity risk of Chinese commercial banks and its management theory definition and analysis, clarifies the concept of liquidity and liquidity risk, liquidity risk management theory and liquidity risk measure index.The third part puts forward enlightenment and reference to the liquidity risk management of Chinese commercial banks through the introduction of laws and regulations on liquidity risk management of commercial banks in western developed countries, such as America and Europe.The fourth section discusses the current situation, influencing factors and problems of our commercial banks liquidity risk management through detailed data and diagrams. It also reveals the significant influence of our commercial banks liquidity risk that the asset structure and quality of banks, external economic environment and macroeconomic policies bring.The fifth part establishes a VAR model with quarter data of commercial banks and analyzes the influence factors of liquidity risk through the tests, impulse response function analysis and variance decomposition analysis.The sixth part put forwards the corresponding countermeasures and suggestions on the liquidity risk management of commercial banks from the aspects of commercial banks on the basis of previous analysis.