Research On The Affecting Factors Of Bank A's Liquidity Risk

In recent years,commercial banks have faced severe macroeconomic situations such as economic downturn,stricter regulation,fierce competition in the Interbank market,and the emergence of Internet finance.They are shouldering the times missions of risk prevention,deepening financial reform,and supporting stable economic growth.Commercial banks are in a critical period of business innovation,model innovation,and integrated operation transformation.Affected by the COVID-19 epidemic in the opening year of 2020,domestic economic development has been impacted,US stocks plunged in the international market,the USD liquidity tends to tight,and the possibility of triggering a financial crisis increased.Preventing and mitigating liquidity risks and enhancing risk resistance are common propositions which China's banks and all financial institutions are facing.Bank Ais China 's first national joint-stock commercial bank initiated by a private enterprise.Since its establishment 24 years ago,Bank A has developed rapidly.It has developed from a small bank with only 1.38 billion capital into a Large commercial bank with the Tier 1 net capital of more than 370 billion.but since 2015,Bank A's non-performing loans have started to explode.The previous rough operation mode has brought a lot of risks.The 2018 annual report is also mixed.Adjusting business strategies in time and strengthening liquidity risk management have become the current priorities of Bank A.This article conducts theoretical research on the internal and external factors of liquidity risk,and combs the methods of liquidity measurement.On this basis,this paper uses multiple indicators to make a comparative study of the current status of Bank A's liquidity risk,then analyze the influencing factors of Bank A 's liquidity risk,and then select the non-performing loan ratio,the proportion of deposits,the proportion of inter-bank assets,and the proportion of non-interest income The inter-bank lending rate is an independent variable and the liquidity ratio is a dependent variable.Empirical analysis of the influencing factors of Bank A 's liquidity risk,and further analysis of the impact strength of each factor and Bank A 's liquidity risk tolerance through stress testing.This study finds that the increase in non-performing loans,the increase in the inter-bank lending rate and the increase in the proportion of inter-bank assets will increase the liquidity risk of Bank A,of which the non-performing loan ratio has a greater impact;the proportion of deposits,the proportion of non-interest income and the liquidity of Bank A The risk is negatively correlated;the capital adequacy ratio has no significant effect on Bank A's liquidity ratio.Under mild and moderate stress scenarios,Bank A's liquidity ratio is still a certain distance away from the safety line.In severe scenarios,it exceeds 25%of the regulatory requirements and a liquidity crisis occurs.Finally,Bank A put forward countermeasures and suggestions from five aspects:preventing and dissolving non-performing assets,actively coping with the loss of deposits,guiding interbank business to return to their origins,strengthening liquidity risk awareness,and developing intermediate business.