The Research On Liquidity Risk And Its Influencing Factors Of Commercial Banks In China

Liquidity is the basic condition for the normal operation of commercial banks.Commercial banks put in loans with a longer term by bringing into short-term deposits.This mismatch of short-term deposits and long-term loans breeds liquidity risks.Therefore,liquidity risk is endogenous.In recent years,financial disintermediation has intensified,residential investment channels have increased,commercial banks have unstable sources of funds and deposits have become demand deposits.At the same time,in order to make profits,banks have increased the issuance of long-term and medium-term loans which result in serious maturity mismatch of assets and liabilities of commercial banks to create greater liquidity risks.Consequently,it is of great significance to strengthen the liquidity risk management of commercial banks.This paper firstly sorts out the relevant literature from the perspective of research issues.It is found that the literature on liquidity risk measurement mostly uses single index and the research on influencing factors is not comprehensive enough.Therefore,this paper uses principal component analysis method to comprehensively evaluate liquidity risk and investigates the impact of development of interbank and intermediary business on liquidity risk.Secondly,based on the liquidity risk theories,this paper summarizesthe formation reasons of liquidity risk from the angles of term mismatch of assets and liabilities,instability of fund sources at the liability end.Then it investigates the current situation of liquidity risk in China's commercial banks by using regulatory and monitoring indicators and indicates that the liquidity risk indicators of commercial banks generally meet the requirementsDue to the limitation of single index in measuring liquidity risk,this paper uses principal component analysis to construct liquidity risk index in measuring liquidity risk of commercial banks.The results show that among the 16 banks,joint-stock commercial banks have the highest liquidity risk,large state-owned commercial banks have the lower liquidity risk and urban commercial banks have the lowest liquidity risk.In the empirical analysis of influencing factors in liquidity risk,this paper selects two liquidity risk indicators,liquidity ratio and loan-to-deposit ratio as dependent variables and macro and micro influencing factors as independent variables and uses the 2011-2017 annual and semi-annual data of 16 listed banks to build a panel data model according to the operation mechanism and bank size classification.The regression results show that the larger the proportion of interbank business and the higher the non-performing loan ratio,the greater the liquidity risk of commercial banks.The larger the proportion of non-interest income and the higher the growth rate of broad money,the smaller the liquidity risk faced.Finally,according to empirical conclusions,conclusions in this paper can be drawn as follows: different types of banks have different liquidity risks;liquidity risk is mainly affected by business scope,inter-bank business and monetary policy and so on.And this paper puts forward that commercial banks should carry out inter-bank business rationally,the proportion of intermediate business income should be increased,the loan examination of the customers should be strengthened,moderate liquidity in the banking system should be maintained and other policy recommendations.