The Study On The Impact Of Factors On Liquidity Risk Of Commercial Banks In China

Whether liquidity is sufficient and how to monitor the liquidity issue effectively has become the focus in commercial banks’ operation.Once the liquidity pressures has changed dramatically,it may lead to the outbreak of bank liquidity risk,not only cause the bank runs,even may lead to a regional and international financial crisis.Thus,liquidity management of commercial banks has been the focus of the bank itself and the banking supervision department.Especially,after the international financial crisis in 2008,risk factors and sources of liquidity risk are growing complexity and the transmission speed of risk in financial institutions is becoming faster and faster.As a result,the difficulty of supervising liquidity risk in commercial banks has increased by year.International emphasis on liquidity regulation has also deepened in 2010.In order to compensate for the lack of liquidity,the Basel Committee established the comprehensive liquidity risk measurement and regulation in "Basel III" to unify liquidity risk monitoring indicators.In China,the problem of having too much liquidity was once the focus of academic research.Till June the 2013,Chinese banking sector was faced with liquidity deficiency,then banks and regulators have restarted to take notice of liquidity risk.In recent years,according to the monitoring of liquidity,indicators show that Chinese commercial banks have sufficient liquidity in surface,but it still has liquidity problem.On the other hand,interest rate marketization、deposit insurance system、the establishment of exit mechanism and the rapid development of the Internet make the liquidity risk become the key factor in operations of Chinese commercial banks.Therefore,the establishment of the banking sector’s liquidity risk management system is imperative.In this paper,based on the theory of liquidity risk management and the present situation of Chinese commercial banks’ liquidity risk management,we use the VAR model to analyze data from January 2013 to September 2015,in order to point out the liquidity problems in Chinese commercial banks’ management.And on this basis,paper provides some targeted solutions about the liquidity matters from the macro perspective.