Status And Problems Of Commercial Banks Liquidity Monitoring

After the outbreak of the financial crisis, with the upgrade of liquidity supervision requirements, avoiding the recurrence of similar financial crisis has become the focus of international regulators, highlights the growing importance of commercial bank liquidity management. Therefore, the development of an unified and effective liquidity supervision index and system of the commercial bank in the world is imminent. In this case, after continuous research, discussion, modification and summarizing, the Basel Committee revised and improved the Basel protocol, introducing the Basel III. In the liquidity regulation, Basel III is developed to a renewed level, improving liquidity supervision to the same important position as the capital supervision, The revised Basel III is to improve the measurability and operability of the liquidity risk of commercial banks.With the current innovation of financial product, consistent deepering of financial market, commercial bank liquidity management becomes more difficult. In this context, the impact of Basel III has a certain significance for liquidity supervision of commercial banks in China, which has also brought a great the challenge. Through continuous modification and the views of all parties, the liquidity monitoring index of commercial bank of our country proposed new index-LCR, besides Basel Ⅲ,and some is of which suit China conditions and the bank industry characteristics like the loan to deposit ratio, the proportion of liquidity which are essential indicators of current regulatory authorities to monitor the liquidity.The liquidity monitoring index, what is the role of monitoring indicators of and monitoring methods, and how to possibly and effectively monitor the liquidity of commercial banks. All these questions will naturally extend to problems like what is the ultimate source of the liquidity of commercial banks is, and which business in commercial banks structure reflects these aspects of liquidity. But in some specific period of time, the problems reflected by the bank liquidity go against that reflected by the capital market. Thus, all these caused some controversy and discussion about liquidity monitoring and the source of the liquidity of commercial banks.From the monitoring of the status of liquidity of commercial banks as the starting point, this paper describes the current situation of liquidity monitoring indicators, monitoring of liquidity financing behavior, and the main problems existing in the current liquidity monitoring:one is LCR undermine the efficient use of assets, which is too complex and lack of scientific weight; the second problems is the loan to deposit ratio monitoring coverage is narrow and the loan to deposit ratio monitoring can not keep up with the market development speed; the third one is the monitoring of the toplimit of the loan to deposit ratio restricts the loan; the forth one is that liquidity ratio has greater uncertainty, and its emphasis on short-term liquidity monitoring, doesn’t keep up with the pace of development of business; the fifth one is the misunderstanding that increasing deposits can increase the liquidity of commercial bank. Finally, these defects monitoring methods and viewpoints may affect the effective transmission of monetary policy.Therefore, this paper argues that under the condition that monitoring indicators cannot be abolished and cannot popularize "increase deposits can not increase the liquidity of commercial bank", we must take measures and methods to improve it and solve these problems so as to provide better reference for monitoring the liquidity of commercial banks. Therefore, this paper presents some recommendations. We must manage liquidity from top to bottom, adjust the content of LCR and the discount factor, perfect the loan to deposit ratio measurement formula and monitoring standard, create additional liquidity indicators as the main monitoring indicators, and clarify the relationship between the deposit and the liquidity of commercial banks. In a word, as far as possible, we need to improve liquidity monitoring methods and views, negative effect of the conduction of monetary policy to the minimum, and improve the degree of refinement and specialization level of liquidity risk management.