Research On The Impact Of Interbank Business On The Liquidity Of China's Commercial Banks

Liquidity ranks first in the three principles of commercial bank management and is the top priority in the management of commercial banks.The liquidity level of commercial banks not only directly affects their own business development and even affects the development of the entire national economy.With the deepening of financial deepening reforms,China has gradually liberalized interest rate control.Commercial banks have been challenged by the “borrows short and lend long”.The commercial banks have turned their attention to inter-bank business in search of new profit points.Since then,the inter-bank business has developed rapidly in China.However,with the diversification of business forms,inter-bank business has gradually lost the function of making up for the liquidity shortage.Once applied improperly,it may even cause a liquidity crisis in commercial banks.Especially after the “money shortage” in 2013,the impact of interbank business on liquidity has become the focus of financial market.This paper explores the impact of interbank business on the liquidity of commercial banks,and has important theoretical and practical significance for the development of interbank business and liquidity management and the stability of financial markets in China's commercial banks.This paper first introduces the concept and current situation of interbank business and liquidity of commercial banks,and then analyzes the impact path of interbank business on the liquidity of commercial banks from the two aspects of asset and liability.Finally,combined with the theoretical analysis of the previous article,this paper selects the annual data of 20 listed commercial banks from 2008 to 2017 for empirical analysis and uses the system GMM method for robustness test.It is found that from the perspective of commercial banks as a whole,inter-bank business the higher the proportion of scale,the worse the liquidity of commercial banks,and the greater the possibility of a liquidity crisis.In addition,banks of different natures have different influences on their liquidity.The development of inter-bank business by state-owned banks is conducive to the level of liquidity.The development of inter-bank business by joint-stock banks and city commercial banks has an adverse impact on their liquidity.It can be seen that when the inter-bank business develops to a certain extent,it will not only ease the liquidity pressure of commercial banks,but will even expand the liquidity gap of commercial banks.