Research On The Impact Of Interbank Leverage On The Liquidity Risk Of Commercial Banks

Leverage is an important feature of financial development.It can be said that banks have a natural tendency to increase leverage.Leveraged trading has brought fragility to finance,as exemplified by the global financial crisis triggered by the subprime mortgage crisis in the United States.Although there is no large-scale crisis in China so fa,the "money shortage" in 2013 and other liquidity shortages events have exposed loopholes in the liquidity management of commercial banks in China--banks over rely on businesses each other for financing and investment.And this round of high financial leverage is promoted by the interbank capital flow chain,so we need to pay close attention to the problem that the interbank business pushes up the leverage and then affects the liquidity of the bank.This paper studies the effect and direction of interbank leverage on liquidity risk from the two dimensions of individual liquidity and system liquidity.The part of theoretical research consists of three parts: firstly,the paper discusses the path of the trade plus leverage and the driving factors of the rapid development of these services;Secondly,the measure index of the common lever and liquidity risk is analyzed and sorted,and then the index used in this paper is selected.Thirdly,the paper analyzes how interbank leverage affects liquidity risk,which provides theoretical support for the later empirical research.In the empirical part,the dynamic panel model is used to study the influence of the interbank leverage on liquidity risk.Through theoretical and empirical analysis,the results show that there is a positive correlation between interbank leverage and individual liquidity risk and systemic liquidity risk and the liquidity risk of banks is increasing because of the rapid increase in interbank leverage.Therefore,it is impossible to ignore the risks hidden by over-reliance on the business.In response,the relevant departments have already taken the risk prevention and control of interbank business as the regulatory focus and focused on new types of arbitrage activities.It is suggested that banks should regulate the interbank business operation,strengthen the term management ofassets and liabilities,and pay attention to the control of self-risk.Regulators should strengthen supervision of interbank financing methods,perfect macro-prudential supervision of banks and financial institutions,and strengthen systematic liquidity management.In addition,in the process of financial deleveraging,we must adhere to the problem-oriented rather than one-size-fits-all and focus on managing leverage that is outside of regulation.At the same time,we need to establish a long-term mechanism to promote better financial supply-side structural reform,while not too eager to achieve immediate results.