| In recent years,interbank business grew rapidly.Interbank business becomes an important tool of banks to evade supervision for arbitrage.It supports the rapid expansion of assets and becomes a new profit growth point of banks.However,the development of the interbank business has changed the structure of the bank's assets and liabilities and has aggravated the mismatch,which would be bound to have an impact on the bank's liquidity risk.The outbreak of “money drought” fully exposed the hidden risk of interbank business.The financial supervision department should pay attention to the supervision of interbank business.How does interbank business influence liquidity risk? this paper will analyze in theory and empirical analysis.This paper consists of 5 chapters.In chapter 1,it will introduce the background and significance of the research,summary the status quo of interbank and liquidity risk and show the structure of this paper.In chapter 2,it will analyze the status of interbank business and four of its operating models,and point out its characteristics and what makes the interbank business grow so rapidly.In chapter 3,theories about how interbank business can affect bank's liquidity risk is stated.It will analyze from the pros and cons aspects.In chapter 4,there are two parts in the empirical analysis.The first empirical analysis focuses on measuring the level of liquidity risk using the principal component theory,and the result is being used in the second part.The conclusion is that the impact of interbank business on liquidity risk is in the “inverted U” shape.That is,when the amount of interbank business is less than the threshold,interbank business will be helpful to ease liquidity tensions.But when the amount of interbank business exceeds the threshold,interbank business will deteriorate the liquidity risk.The fifth chapter is based on the above analysis.Focusing on the empirical conclusions,suggestions are given for banks. |
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