Evaluation System Of Liquidity Rsik For Rural Commercial Bank

Liquidity risk is one of the important risks faced by commercial banks.In the past,credit risk was the most concerned operational risk in the banking industry.However,with the deepening of the complexity of the bank's assets and liabilities structure,the continuous evolution of financial innovation and the continuous advancement of the interest rate marketization process,the destructive power and influence of liquidity risk become more prominent.In June 2013,the sudden emergence of phase liquidity tension in the inter-bank market spread in China,which undoubtedly exposes the problems of liquidity risk management in China's commercial banks.This phenomenon,known as"money shortage",has also sounded an alarm bell for the liquidity risk management of domestic commercial banks.In 2018,China's overall economic situation is in a downward trend.There is a general weakness in deposit growth in commercial banks,especially in many small and medium-sized banks.If the bank's balance sheet is not adjusted in time,it will face greater liquidity risk.As of the end of June 2018,China's banking industry had 4571 institutions,according to the updated list of China's banking financial institutions published by the Banking and Insurance Regulatory Commission.Among them,there are 2249 agricultural and commercial banks,accounting for 49.2%of the total banking financial institutions.Agricultural and commercial banks,as small and medium-sized legal person banks in rural areas with relatively weak management ability,on the one hand,the competition in the financial industry intensifies,and small and medium-sized legal person banks in rural areas bear the brunt.Driven by pressure,small and medium-sized corporate banks in rural areas have a strong desire to strengthen financial innovation and improve their profitability.On the other hand,the financial strength of rural small and medium-sized corporate banks is relatively limited,and the liquidity management mechanism is not as perfect as that of national large and medium-sized banks.Often,they lack sufficient capacity to build a comprehensive coverage,timely and effective liquidity risk monitoring and early warning information system,which leads to the relatively weak liquidity risk management ability and makes it difficult to meet the"Commercial Bank Liquidity Risk Management Office".Law(No.3 of CBRC Decree 2018),hereinafter referred to as "Measures",puts forward the basic requirement that"commercial banks should establish liquidity risk management system at the level of legal person and group which is compatible with the scale,nature and complexity of their business".Faced with the problems that the liquidity risk assessment and supervision of agricultural and commercial banks need to be strengthened urgently,on the basis of summarizing the existing research,this paper selected 28 agricultural and commercial banks in SD Province as the sample banks,and used their index data at the end of June 2018 to carry out empirical research.Using cluster analysis,10 liquidity risk assessment were screened from three dimensions:debt perspective,asset-liability relationship perspective and asset perspective.Key indicators,using the entropy method to objectively empower the liquidity risk evaluation indicators,and then construct the liquidity risk evaluation system of Agricultural and Commercial Bank.The overall liquidity risk ranking of 28 agricultural and commercial banks is obtained.Taking DY agricultural and commercial banks at the bottom of the ranking as an example,the paper evaluates the overall liquidity risk level and specific liquidity risk influencing factors,and puts forward corresponding risk management suggestions,which verifies the practicability of the liquidity risk evaluation system in this paper.Based on the conclusions and findings of the study,this paper puts forward some suggestions on liquidity risk management from the regulatory level of the Agricultural and Commercial Bank and the banking industry.At present,the comprehensive evaluation of liquidity risk of agricultural andcommercial banks in China is basically in a blank state,lacking both methodological research and empirical analysis of a large number of data.On the basis of summarizing the study of liquidity risk assessment and early warning at home and abroad,combining with the operation and risk reality of Agricultural and Commercial Bank,this paper scientifically selects liquidity risk evaluation index by cluster analysis,eliminates the correlation and redundancy of the index,and objectively empowers the index by using the method of entropy,thus avoiding the risk evaluation index.The empirical estimation of bid weight ensures that the risk assessment is comprehensive and reasonable.