Empirical Research On Liquidity Risk Of Rural Commercial Banks

Rural commercial bank(RCB)is an important member of Chinese rural financial system.Liquidity risk is one of the most destructive financial risks in rural commercial banks operation.In the complex rural financial environment and intensively competitive regional market,how to reduce their liquidity risk in the development of progress,has become an important issue for all rural commercial banks to be solved.In 2003,rural credit cooperatives began to reform and combine into RCBs.With the new round of rural financial reform,the property rights in RCBs have become more clearly than before,and the capital management level has also improved greatly.Compared with the state-owned commercial banks,RCBs is a smaller and easier impacted by local economic conditions,with weaker awareness of liquidity risk and more comprehensive liquidity risk management(LRM)systems.In this context,the liquidity risk of RCBs empirical study is focused in this paper.Firstly,the existing literatures on liquidity risk factors,research risk measurement and risk management are studied,and the significance and purpose of this research are presented.The current situation of rural commercial banks and LRM strategies are briefly analyzed.Secondly,combined with RBCs over the years our business indicators and macroeconomic data,the exogenousendogenous factors and the index factor on RBCs' liquidity risk profiles of specific influences are elaborately analyzed.Thirdly,according to the operating data of 8 typical RBCs' in last 9 years,a comprehensive LRM indicator of RCBs is presented,after the establishment of LRM model using principal component analysis.Finally,according to the combination of the status quo of LRM of RCBs and empirical analysis,a series of optimized RCB liquidity risk monitoring and management strategies are proposed,with the perspective of the macroeconomic policy designed by National Bank and microscopic management practices of RCBs.