Research On Liquidity Risk Management Of Z Securities Company

In recent years,the securities industry has actively practiced the transformation from traditional business to capital intermediary and asset-liability business.Supervision reform,business innovation and risk management will be the main theme of the future development of the securities industry.While the securities industry has broad prospects for development,it also faces enormous challenges.Since 2012,securities companies have gradually increased capital intermediation services such as margin financing and securities lending,stock pledges,and agreed purchases,which have become increasingly demanding on securities companies.At the same time,since 2012,securities companies have also increased short-term financing bills,income certificates,corporate bonds and other liabilities,and gradually increased the capital leverage ratio.The rapid growth of the securities intermediary business by the capital intermediary business has led to a significant expansion of the balance sheet,and the mismatch of assets and liabilities has led to the potential for liquidity risk.In terms of policy supervision,after the introduction of Basel III,The Securities Association of China issued Guidelines for liquidity risk management of securities companies in accordance with the latest requirements of Basel III on liquidity risk supervision,Liquidity Coverage Ratio(LCR)and Net Stable Funding Ratio(NSFR)are introduced into the liquidity risk management of securities companies.In 2016,The Securities Association of China revised the Regulations on Risk Control Indicators of Securities Companies,which upgraded the liquidity coverage rate and the net stable capital rate from the industry self-discipline rules to the Securities Regulatory Commission department rules and gradually evolved into the core regulatory indicators of the industry associations for securities companies.At present,the liquidity risk management of securities companies is still in its infancy,both in terms of theoretical basis and experience accumulation.The risk assessment and risk control capabilities in the liquidity risk management process need to be further strengthened.How to establish a liquidity management framework based on asset-liability management is crucial for securities companies.Liquidity management capability will become an important component of the core competitiveness of securities companies.Based on the study and research of liquidity risk management theory,regulatory policy and industry management experience,this paper takes Z Securities Company as the research object,discusses the problems of liquidity risk management of Z Securities Company and puts forward relevant management suggestions.Through research,it is found that Z Securities' liquidity risk preference has only qualitative description and lacks quantitative management.The liquidity risk management process lacks risk identification,business sector participation is insufficient,liquidity index management system is imperfect,and emergency management flows.form.In response to the above problems,it is recommended to provide countermeasures from the following aspects: First,improve the evaluation mechanism of liquidity risk preferences.Establish a sound liquidity risk preference management system: add quantitative description of risk preferences,and improve the periodic assessment and reporting mechanism of liquidity risk preferences to provide effective guidance for corporate liquidity management.Second,strengthen liquidity risk management.Defense line construction.Enhance the awareness of liquidity risk management in business departments,improve the liquidity risk management capabilities of business units by assigning commissioners or strengthen professional training,and clarify the relevant responsibilities of business unit liquidity risk management;Third,improve the liquidity indicator management system.On the basis of external liquidity supervision indicators,new cash flow gap indicators,asset and liability management indicators,and concentration indicators will be added,and monitoring quotas will be set to achieve multi-dimensional monitoring of corporate liquidity risks.Fourth,an emergency leadership team will be established to carry out Substantial emergency drills.The relevant recommendations of Z Securities' liquidity risk management proposed in this paper can play a certain warning and reference for the liquidity management of securities companies in the same industry.However,due to the influence of various factors,this paper still has limitations.How to establish a liquidity management framework based on asset-liability management from the perspective of securities companies,while serving the implementation of the company's business strategy,scientifically and effectively control liquidity risk,thereby enhancing the competitiveness of the industry,and further research is needed in the future.