Research On Liquidity Risk Management Of Shengjing Bank

In recent years,with the rapid development of China’s financial market and the continuous promotion of interest rate marketization,financial disintermediation,intensified inter-bank competition,and new changes in regulatory requirements,China’s commercial banks have become more stringent.As one of the three basic principles of commercial bank operation,liquidity has been widely valued.The liquidity risk of commercial banks has complex causes,rapid spread,and systematic and linkage characteristics.Credit risk,operational risk,market risk,and reputation risk may cause the occurrence of liquidity risk.Therefore,liquidity risk management has always been an important topic for commercial banks.China’s residents have the characteristics of high savings rate,coupled with the steady development of China’s financial system,so the overall liquidity of China’s commercial banks is good.However,due to the impact of the COVID-19,the market environment has become more severe,and the uncertainties have increased dramatically,laying hidden dangers for the liquidity risk of commercial banks.In China’s history,there have been times of money shortage,bank run and bank bankruptcy.From these cases,we can see that the liquidity crisis has brought great challenges to the stable operation of commercial banks.Under this background,this thesis selects Shengjing Bank as the research object,analyzes its current liquidity level,studies its liquidity problems through factor analysis,and puts forward feasible suggestions for Shengjing Bank’s liquidity risk management based on the empirical results and the actual situation.This thesis studies the liquidity risk of Shengjing Bank,first of all,in-depth understanding of basic theoretical knowledge,and through the combination of theory and practice,using a variety of research methods for analysis.First of all,it introduces the operation status of Shengjing Bank,selects some liquidity risk supervision indicators for analysis,deeply understands the current liquidity risk management goal setting,organizational structure and management process of Shengjing Bank,measures its liquidity risk,and explores the current problems and causes of Shengjing Bank’s liquidity risk management.Then we select the liquidity related indicators to analyze with the factor analysis method,in-depth study its liquidity status and analyze the reasons.The research results show that the liquidity level of Shengjing Bank has generally improved in recent years,but there are still problems such as insufficient profitability,provision coverage rate not in line with regulatory indicators,high non-performing loan rate and high concentration of the loan industry.Once again,the stress test is carried out on Shengjing Bank.This thesis selects the capital adequacy ratio and net interest margin as risk factors to build a multiple linear regression model for stress test,analyzes its liquidity level changes under different impact scenarios,and finds that the liquidity coverage of Shengjing Bank cannot meet the regulatory requirements under the moderate or severe risk factors.Based on the current situation analysis,factor analysis and stress test results,this thesis puts forward four suggestions for the improvement of Shengjing Bank’s liquidity risk management,hoping that it can achieve long-term and healthy development: first,improve profitability,improve the level of return on assets,diversify the sources of operating income,and seek new profit growth points.Second,improve the asset-liability structure,reasonably use the asset-liability management theory,and do a good job in asset-end management.Third,reduce the non-performing loan rate,reduce the concentration of the loan industry,do a good job in customer management,and comply with the lending process.Fourth,enhance the awareness of liquidity risk management,conduct regular risk assessment,strengthen the construction of internal control system,and cultivate professional talents.