The Impact Of China's Liquidity Supervision On Profitability Of Commercial Bank

The management of liquidity risk has always been a major challenge for the banking industry.Banks with good operating conditions can quickly fall into crisis in the absence of liquidity.In recent years,China's macroeconomic growth has slowed down,and there is downward pressure in the future.Since 2018,China has experienced the macro-control of “de-leverage”,the impact of the credit default wave and the Sino-US trade wars,and the systematic risks of financial markets have an upward trend.China's commercial banks face more severe liquidity risk challenges in the current environment.At this node,the "Measures for the Management of Liquidity Risks of Commercial Banks" was formally introduced.Based on the latest changes in China's liquidity supervision system,this paper first analyzes the impact of the implementation of the latest liquidity supervision system on the profitability of China's commercial banks.Then it analyzes the mechanism and related influence of liquidity matching rate on the profitability of commercial banks.Finally,the liquidity matching rate of the sample bank was measured,and the relationship between the liquidity matching rate and the profitability of commercial banks in the six years from 2012 to 2017 was empirically analyzed through the dynamic panel model.The research results show that the implementation of more strict and fine liquidity supervision system will directly raise the overall cost of commercial banks in the initial stage.There is an inverted U-shaped nonlinear relationship between liquidity matching rate and commercial bank profitability.In view of the current low liquidity matching rate of commercial banks in China,the measures to reduce the maturity mismatch can bring greater marginal benefits to banks by enhancing the ability of commercial banks to resist liquidity risks.Finally,based on the results of theoretical and empirical analysis,this paper proposes relevant countermeasures and suggestions for China's liquidity supervision system and commercial banks.