Research On The Impact Of Inter-bank Business On The Liquidity Risk Of Industrial Bank

In the fierce competition of commercial banks in recent years,inter-bank business has been characterized by low financing costs,low capital occupation,and low risk accrual.It has been used as a liquidity measure to regulate short-term positions of banks and slowly to bank profits.The growth point has changed and the growth momentum is rapid,but this also hides great risks.The profit form of some inter-bank business is mainly characterized by maturity mismatch,which means that the risks faced by commercial banks,especially liquidity risks,will increase.In order to guide the good development of inter-bank business and reduce the liquidity risk that banks may face,it is necessary to study the impact of interbank business on bank liquidity risk.This paper firstly expounds the definition and types of inter-bank business concepts,and combs the relevant theories of commercial banks' liquidity risk through the literature,including its concept definition,formation mechanism and measurement methods.At the same time,it also expounds the mechanism of interbank business affecting the liquidity risk of commercial banks.On this basis,this paper takes Industrial Bank as the case study object,and specifically analyzes the impact of interbank business development on its liquidity risk.This paper starts from the development status of the interbank business of Industrial Bank,sorts out its development characteristics,and analyzes the impact of interbank business on liquidity risk.In order to deeply study the impact of the scale and structure of Industrial Bank's interbank business on liquidity risk,this paper combines the empirical model,selects the relevant quarterly data from 2007 to 2018,and establishes a multiple linear regression model with liquidity risk as the explanatory variable to develop specific analysis.At the same time,combined with the actual background of the current strict supervision,this paper further introduces the regulatory policy as a dummy variable in the model,and studies the difference in the impact of interbank business development on liquidity risk before and after its implementation.Through case studies and empirical analysis,the following conclusions were obtained:(1)In recent years,Industrial Bank's scale of inter-bank assets has declined significantly,mainly due to the decline in the size of financial assets purchased for resale,and the internal business structure of inter-bank assets has gradually become more balanced in recent years.From the perspective of interbank liabilities,Industrial Bank's interbank liabilities accounted for a relatively high proportion,and its internal composition was quite different.The interbank deposit ratio was much higher than the other two businesses.(2)The scale of interbank assets has a significant positive impact on the liquidity risk of Industrial Bank.Among them,the expansion of the size of financial assets purchased under resale will increase the liquidity risk faced by banks,while the scale of interbank liabilities will affect the liquidity risk of Industrial Bank.There is no significant impact.(3)The introduction of regulatory policies will change the impact of Industrial Bank's interbank business on liquidity risk.Under the strict supervision background,Industrial Bank should further adjust its inter-bank business structure,paying attention to the development of inter-bank asset demolition funds business,attach importance to control the scale of interbank liabilities in the same industry to reduce liquidity risk.In view of the above analysis and research results,this paper also puts forward the following suggestions from the two aspects of Industrial Bank's own inter-bank business development and macro-regulation:(1)Control the mismatch of maturity to reduce liquidity risk;(2)further adjust and improve inter-bank business structure in a targeted manner;(3)attach importance to financial innovation and accelerate its own transformation;(4)adhere to strict implementation of inter-bank business supervision Standards to promote its normative development;(5)Actively guide and promote asset securitization and promote standardization of inter-bank business.