Research On How To Constitute An Indicators System Of Controlling The Liquidity Risks Of Commercial Bank In China And Measurement Method

After the Finance Crisis of 1997 in Asia, both developed and developing countries had a new understanding to the finance risks, and already thought it more seriously than before how to control the risks. Commercial banks are the most important financial institution in a country, their development influence the economy development of the country. At present, China is in the period of economic finance reforming. How to set up an effective risk management system and intensify the financial guarantee became a hot problem for the theory bound and management department.Liquidity, safety and profitability are the existent base of a commercial bank. Among the three characteristics, liquidity is the lifeline of commercial bank. The liquidity management of money has already become the important sign of the level of the commercial bank operation management. To maintain liquidity is important not only for commercial banks but also the whole financial system even the whole economy system. The article refers to a method based on the study on the liquidity management strategy before and foreign and national active indexes, which constitutes an index system of controlling liquidity risks.On the basis of the literature review, the article first researches the causation and influencing factors. Because of the uncertainty of the source and the using of funds, and the contradiction between liquidity and interest, liquidity risk is certain to exist in commercial bank. Influencing factors of liquidity include asset and debt structure, the center bank policy, degree of money market development, credit risk and fluctuation of interest rate. Then the article set up an original indicator system based on the existing indicators of commercial banks both in China and in foreign countries. The complete indicator system needs the following factors: Asset liquidity indicators, Debt liquidity indicators, Integration liquidity of the two hands indicators, othersindicators that reflects financial market information, and Marketing information indicators.After setting up the original indicators system, the article applies SAS, economy statistic software, to the system to delete the needless indicators and set up a new system, which contains the most efficient indicators. Then the article gave weight to every new indicator by AHP (The Analytic Hierarchy Process). At last, the article demonstrated by real data of commercial bank in China, and put forward the policies that includes the asset and debt structure, the inter-bank management to commercial banks, operating management of out-circumstance and so on.