Chinese Commercial Banks' Liquidity Influential Factors Research

In the operation process of commercial bank, mangers are seeking a balance among liquidity, security and profitability. Among them, liquidity is an important goal. Liquidity problems may trigger to payment difficulty, bankruptcy of a singer bank or even global financial system security.The US subprime mortgage crisis happened in 2007 was regarded as lack of liquidity regulation requested in Basel I and Basel II by Basel committee. Liquidity coverage ratio and net stable funding ratio were put forward in Basel III requiring banks to implement more comprehensive and more meticulous liquidity management. In this paper, the current liquidity situation of various commercial banks is analyzed by comparing Liquidity coverage ratio and influencing factors of liquidity are studied through empirical analysis from the view of microcosmic angle.In this paper,31 sample domestic banks are divided into four categories, large commercial banks, joint-stock commercial banks, city commercial banks and rural commercial banks. Current domestic banks'liquidity situation are analyzed by selecting appropriate figure of liquidity ratio, loan deposit ratio and liquidity coverage ratio. By using chart, the comparison method and inductive method are used to compare average liquidity measurement index of four different types of banks.In the study of the factors affecting liquidity, econometric model is used, some influence factors are selected as independent variables, liquidity coverage ratio is selected as dependent variable. The influence of internal factors are studied from asset scale, asset quality, capital adequacy situation, profitability and asset liability structure aspect. The SPSS software is used to analyze internal influence factors of liquidity of 31 sample data of commercial banks and the sample data of listed banks individually. We draw some conclusion as below:The liquidity of domestic commercial banks is affected by asset quality, capital adequacy situation and asset structure while the liquidity of listed banks is only affected by liability structure.Finally, this paper puts forward some suggestions on the improvement management of liquidity based on characteristics of new liquidity regulation index and the results of research.