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

With the accelerated development of interest rate liberalization in China,the rise of Internet finance,and the implementation of a macro-prudential regulatory system,competition in the banking system is becoming increasingly fierce,and the profit margins of traditional businesses of commercial banks are shrinking.Commercial banks urgently need to find new profit growth points and improve profitability.Interbank business has the advantages of saving capital,not being subject to deposit-loan ratio indicators,and no need to pay deposit reserve,etc.,and can meet the needs of commercial banks for new business.Interbank business in China's commercial banks has grown rapidly since 2009,but due to the irregular development of interbank business,it triggered two "money shortages" in 2013.After the five departments jointly issued the "127" representative document,which is considered to regulate the compliance operation of the interbank business,especially after the interbank deposit certificate was incorporated into the MPA system,the interbank business began to gradually move towards a standardized development path.In recent years,China's economic growth has faced greater downward pressure.Under the background of financial deleveraging and stricter supervision,the original main function is to regulate the interbank business with surplus funds,and its business form has also changed.Interbank business now increases the liquidity risk of commercial banks,or eases the lack of liquidity,or is it a "U" type relationship? This article analyzes the impact mechanism of commercial banks' interbank business on liquidity risk in this context.Based on the integration of relevant domestic and foreign research literature,this article summarizes the relevant theories of commercial banks' interbank business and liquidity risk.Firstly,the related theories of interbank business and liquidity risk in China's commercial banks are introduced,and the relationship between the two is analyzed theoretically.Secondly,the status of interbank business in China'scommercial banks and the impact of interbank business on liquidity risk are analyzed.Finally,the quarterly data of 16 commercial banks from 2009 to 2019 were selected as research samples,and the principal component analysis method was used to construct indicators to measure the liquidity risk of commercial banks.The panel model was used to conduct empirical analysis and draw the conclusions.Furthermore,analyze whether this conclusion is applicable to different development stages of interbank business among different banks.The study found that the relationship between commercial banks' interbank business and its liquidity risk has a U-shaped characteristic,that is,there is a certain threshold value.When the size of the interbank business is within this threshold,the increase in the size of the interbank business has a commercial bank liquidity risk.Slowing effect;when the threshold is exceeded,the increase in the scale of interbank business will increase the liquidity risk of commercial banks.Further,this conclusion applies to joint-stock banks,but not to state-owned banks;after the promulgation of "Circular 127" in 2014,commercial banks' ability to resist liquidity risks caused by interbank business has increased.According to the research conclusions,this article puts forward policy recommendations based on the actual situation.