Research On The Impact Of Inter-bank Business Transformation Of City Commercial Banks On Liquidity Risk Under The New Asset Management Regulations

With the development of the financial market,the interbank business of commercial banks has become a channel for packaging various non-standard assets.Commercial banks transfer various types of customer financing from on-balance sheet to off-balance sheet to achieve the purpose of lowering the loan-to-deposit ratio,reducing loan loss provisions,reducing capital consumption and increasing profits.Before the promulgation of the new regulations on asset management,in order to meet the strong financing needs of the economy,the regulatory authorities allowed commercial banks to use interbank business to disassemble long-term non-standard assets into short-term capital needs,and use self-operated funds or asset management products to meet the maturity mismatch.Due to the constraints of their own operating shortcomings and the external environment,city commercial banks are very dependent on this interbank business operation mode.After the promulgation of the new regulations on asset management,most of the original interbank business operation models were banned.In order to meet regulatory requirements,city commercial banks have to seek inter-bank business transformation.During the entire transformation process,city commercial banks need to rectify their original business models,deal with non-compliant assets and non-performing assets,explore new businesses to replace old products,etc.,which will bring a lot of transformation pressure to city commercial banks.This is likely to make city commercial banks encounter a crisis in risk management,especially the pressure of liquidity risk.First of all,this paper summarizes the characteristics of city commercial banks’inter-bank business before the implementation of the new asset management regulations,and shows that city commercial banks are highly dependent on inter-bank business,have many accumulated disadvantages,and face greater pressure for transformation.The inter-bank business transformation of city commercial banks mainly involves three aspects:business model rectification,asset disposal,and new inter-bank business product development.Starting from these three aspects,this paper analyzes in detail the factors that affect the liquidity of city commercial banks after the implementation of the new asset management regulations,and believes that the rectification of the interbank business model has resulted in a decline in the income of city commercial banks,and the increase in non-performing assets and non-standard assets.Disposals also reduced banks’ capital adequacy ratios and negatively impacted liquidity metrics.However,after the implementation of the new asset management regulations,the adjustment of the development direction of the inter-bank business of city commercial banks has not had a significant positive impact on reducing liquidity risk.Then,this paper takes Z Bank,a typical interbank business,as an example,to analyze the influence of factors such as model rectification,asset disposal,and product focus changes on liquidity-related indicators in the transformation of Z Bank’s interbank business.At the same time,this paper,uses the principal component analysis method and the multiple linear regression model to analyze the liquidity trend of Bank Z before and after the new asset management regulations.It was concluded that due to the excessive reliance on interbank business in the past,Z bank conducted interbank transactions in accordance with the requirements of the new asset management regulations.As businesses transform,the liquidity risks they face continue to increase.It can be seen that,after the implementation of the new asset management regulations,with the deepening of the interbank business transformation,city commercial banks may suffer greater liquidity pressure in the short term.Finally,this paper puts forward relevant suggestions on the prevention of liquidity in the transformation of inter-bank business of city commercial banks,including how to improve liquidity risk management capabilities,strengthen corporate governance,and accelerate transformation.