Interbank Business Of China's Commercial Banks:Development,Risk And Regulation

Interbank business was originally a tool for banks to regulate short-term liquidity.However,because it can avoid supervision,expand loan scale,hide credit fund investment,optimize bank balance sheet,reduce capital consumption and others,it has rapidly developed into an arbitrage tool for banks to haven from regulation.While bringing profits to banks,the hidden risks are constantly emerging,and the regulation of regulatory authorities has also been strengthened.Under the strong supervision,the scale of the business has begun to narrow,and the development needs to be transformed urgently.For the sake of finding a more scientific and effective regulatory mode and regulating the development of interbank business,the paper carried out a comprehensive study on the development,risk and regulation of the business.Qualitative and quantitative methods are used in this study.The paper firstly described the definition and development process of interbank business,and analyzed the development scale and features of the business from 2006 to 2017.Secondly,after the analysis of arbitrage mode and risk of interbank business,it is found that the development and supervision of interbank business are a dynamic game process.This kind of interbank arbitrage brings profits to banks,and at the same time,it also increases the risks of banks in credit,liquidity and operation,which brings negative effects on the stability of financial market.Later,it analyzed the supervision route and effect of interbank business,which found that the interbank supervision before 2014 actually promoted the innovation of the business,and that after 2014 and beyond gradually restricted and regulated the development of interbank business.Finally,it carried out an empirical analysis by using panel data of multiple listed banks from 2010 to 2017 to examine the impact of regulatory arbitrage on the risk of banks'interbank business,and examine the impact of financial regulatory indicators and interbank regulatory policies on interbank business.The results of regression analysis are as follows:I.The interbank business of banks will indeed increase their risks in liquidity and credit;II.The lower the net interest margin,the lower the capital adequacy ratio,the higher the provision coverage ratio,the higher the loan-to-deposit ratio,the greater the impulse for banks to carry out interbank business,and the supervision policies in 2014 and beyond are negatively correlated to the development of interbank business,which verifies the preceding qualitative analysis results.Combined with the above research conclusion,the paper puts forward some countermeasures and suggestions,of which the suggestions on banks to carry out interbank business are as follows:1.Changing management idea and enhancing risk management ability;2.Promoting the transformation of interbank business mode,standardizing its development;the suggestions on regulatory authorities to carry out interbank supervision are as below:1.Improving the supervision long-term mechanism and consolidate the regulatory effect;2.Combining macro prudential supervision with micro prudential supervision to prevent financial risks;3.Carrying out reasonable supervision and promoting the development of financial innovation;4.Carrying out consolidated supervision and making up for the short board of supervision...