Study On Liquidity Risk Stress Test Of SH Rural Commercial Bank

With the continuous development of social economy,the domestic financial market of our country step by step with the foreign market,many financial institutions because of its size,replaceability and system and other reasons and makes the correlation of these financial institutions in the financial mixed management plays a relevant role,so the government can not let it to fail,otherwise it will bring a lot of systemic risk to financial institutions,to form the phenomenon of "too big to fail" bank.The convergence of domestic financial market and foreign market will break the "too big to fail" phenomenon of Banks.In the past,the failure of foreign commercial Banks due to the lack of liquidity risk management is also possible in China.This reminds us must raise the risk management consciousness,strengthens the risk prevention.In recent years,some of the state-owned commercial Banks in our country has experienced in 2013 after the "money shortage" of the bank's lending rates as high as 30%,since 2017 there has been because of the liquidity risk,financial deleveraging in the commercial bank liquidity risk in a tense situation,small and medium-sized rural commercial bank default is often the case,the financial systemic risk also follows.Liquidity,as one of the three basic principles in the management of commercial Banks,is the guarantee for the sustainable operation of commercial Banks,the core risk for commercial Banks,and has a significant impact on the stability of commercial Banks and even the financial system.Therefore,the management of liquidity risk is very important to ensure the development of commercial Banks and is also an important factor to ensure the stable and long-term development of Chinese commercial Banks.Liquidity risk management is a key issue for the survival of Banks.Therefore,liquidity risk management is a problem that cannot be ignored by banking institutions.Compared with some other commercial Banks,rural commercial Banks have a single business,small operation scale and limited operation scope.In addition,they lack management ability,which makes them lack of awareness of liquidity risk management and backward management methods.Based on this,this paper conducted a stress test on the liquidity risk of SH rural commercial Banks by selecting four indicators including non-performing loan ratio,short-term financing cost,statutory deposit reserve ratio and deposit loss through extensive reading of relevant domesticand foreign literature.The causes of liquidity risk of SH rural commercial bank were analyzed by combining qualitative and quantitative methods,and then the current situation of the bank was analyzed.Relevant data were collected,and the liquidity risk stress test model of SH rural commercial bank system was established.Through analysis,the following conclusions were drawn: With the increase of stress level of SH rural commercial bank liquidity ratio decline,in the mild and moderate pressure,the bank's liquidity ratio in the range of regulation,temporarily won't appear larger liquidity crisis,but when there is substantial change of financial environment,namely under severe pressure test,the liquidity ratio close to the regulatory requirements of the red line,liquidity risk is also becoming prominent.According to the results of the previous stress test and the actual situation of the rural commercial bank,the corresponding solutions are proposed from the micro and macro perspectives,so as to help the rural commercial bank better solve its liquidity risk.