Research On The Impact Of Liquidity Risk Management On Operating Performance Of Commercial Banks In China

The financial crisis in 2008 made the financial sector,especially the banking sector,pay attention to liquidity risk and realize its harmfulness.In 2010,the Basel Committee on Banking Supervision(BCBS)introduced two international unified quantitative regulatory indicators for the first time to draw lessons from the "Basel Agreement III",bringing liquidity risk into the core regulatory system of the global banking industry.At the same time,with China's interest rate marketization and the deepening of financial reform,commercial banks in the complex and severe economic and financial environment to obtain higher profits to develop business and financial services,this excessive pursuit of operating performance and ignore the management of risk,this behavior lead to the accumulation of liquidity risk.The profit model of commercial banks should be based on the risk management.In order to guide the banking industry to improve the risk management awareness,while actively responding to the changes in the international regulatory trend and introducing the two quantitative indicators of the "Basel Agreement III",a series of management methods have been issued to strengthen the management of liquidity risk.Under the new regulatory requirements,banks' liquidity risk management and adjustment of their business models will inevitably lead to fluctuations in income and performance levels.Then,what's the impact of liquidity risk management on operating performance of commercial banks in China? This paper focuses on this issue.This paper first introduces the research background and significance of the present international and China's commercial banking industry.On the basis of summarizing the relevant literature on liquidity risk management and operating performance at home and abroad,it defines the three parties of liquidity risk,liquidity risk management and bank management performance.This paper expounds the relevant theoretical basis,and discusses the direct impact mechanism of liquidity risk management on operating performance and the indirect impact mechanism of credit risk in two aspects.Secondly,this paper introduces the current situation of liquidity risk management in China's commercial banks from two aspects of liquidity risk supervision and management development and liquidity risk,and compares the liquidity risk management with operating performance in a horizontal and vertical way through statistical correlation analysis.Thirdly,taking 16 Main Listed Banks in China from 2007 to 2016 as research samples,a dynamic panel data model is constructed to analyze the impact of liquidity risk management on the operating performance of commercial banks from the directly impact and the indirect impact on credit risk this two aspects.According to the size of assets,this paper divided the sample into large and small banks whether there are differences in the impact of comparative liquidity risk management on the operating performance of different types of banks.The results show that:(1)the net stable capital ratio NSFR index can better measure liquidity risk compared with the traditional index,which can improve the effectiveness and accuracy of liquidity risk management.(2)liquidity risk management can increase the operating performance level of commercial banks in China by reducing the risk bearing level and financing cost,increasing the income of high quality liquidity assets and other profit assets.(3)strengthening the liquidity risk management of commercial banks can weaken the impact of credit risk on operating performance.(4)the ratio of net stable capital NSFR has a greater impact on the operating performance of medium and small size commercial banks than large types.Finally,according to the conclusions,this paper puts forward some policy advice from the two aspects of bank itself and the regulation of banking level.Commercial banks should strengthen the comprehensive risk management,implement diversified financing strategies,optimize the structure of assets and liabilities and improve the accuracy and frequency of the new index measurement.The regulatory authorities should appropriately raise the minimum regulatory requirements,accelerate the differential supervision of different types of banks and set the appropriate weighting of stable funds.