Research On The Liquidity Management Of FD Banks Under The Macro-prudential Evaluation System

Since 2016,,Based on the demands of the People's Bank of China,to prevent the occurrence of systemic financial risk in China,the People's Bank of China declared changing the Differential reserve dynamic adjustment and Agreed loan management mechanism to Macroprudential assessment system(MPA).Macroprudential assessment system which is beneficial to improve the efficiency of financial regulators of synergy and own higher management regulatory requirements for financial institutions,effectively reducing various types of risk conduction in the economy and preventing the systemic financial risk.Under the new condition of economic,with the progress of interest rate liberalization,the rapid development of shadow bank and the slow growth of the household savings,the liquidity of China's commercial banks have been gradually strained.Liquidity risk is one of the important risk in the commercial bank business activities,macro-prudential evaluation system in commercial Banks liquidity risk management change ever rely on LDR indicators for passive management mode,strengthen the active management of the high quality liquid assets can be converted into cash quickly.so under the macro-prudential assessment system.How to carry out effective liquidity risk management,maintaining a reasonable level of liquidity,plays an important role to the business development of commercial Banks.This paper systematically studies the liquidity risk management of FD Banks after the implementation of the macro-prudential assessment system,which has certain theoretical and practical significance.The main content of this paper is to introduce the current situation of China's commercial Banks' liquidity management under the macro-prudential evaluation system.From the perspective of macro-prudential supervision,this paper analyzes the liquidity risk management of China's commercial Banks,discusses the main problems in the liquidity risk management of China's commercial Banks,and preliminarily analyzes the liquidity management strategies of China's commercial Banks under the new regulatory environment.Combined with the assessment requirements of themacro-prudential assessment system,taking FD bank as an example,a commercial bank in a city of a province in southwest China,this paper analyzes the liquidity risk management tools used by FD bank under the macro-prudential assessment system and the tools' effects,then analyzes and judges the actual situation of liquidity risk management of FD bank under the new regulatory situation.Based on the practice of liquidity management in FD Banks under the macroprudential evaluation system,the improvement strategy of liquidity management is proposed.The main contributions and innovations of this paper are as follows: first,this paper analyze the current situation of China's commercial Banks' liquidity management under the background of implementing the macro-prudential evaluation system;Second,based on the situation of FD bank's liquidity risk management and the practice of stress test,this paper analyzes the problems existing in its liquidity risk management under the new regulatory situation and proposes reasonable liquidity improvement strategies one by one.