Environment And System Cause For Excess Liquidity Of Commercial Banks, And Its Solution.

In the background of global economic imbalances and excess liquidity, our banks are also facing the plight of excess liquidity, it was a contrast with the lack of liquidity that China' s commercial banks have generally faced in 90's last century. In recent years, problem of the excess liquidity is a hot topic with the international economic circles all the time. Our government and academic circles pay more attention on the problem of excess liquidity in China' s economy sectors, especially commercial banks'. They considered the problem of excess liquidity is one of the root that it has led many economic problems, such as latent inflation, financial risks, less efficiency of resources allocation, and so on. For the problem of excess liquidity of commercial banks, in general, it means that the amount of deposits and loans is not suited in commercial, the proportion with the amount of deposits and loans went beyond natural area. Thereby, plentiful fund was cycled in intestine financial system, and failed to play a role in economic entities, then it took the waste of funds and pressure in banks. The main features of the excess liquidity in commercial banks is, continued low of eposit and lending rate, high rate of reserve with excess eposit, low interest rates of securities repurchase and interbank borrowing within banks, durative extend with the gaps of M1 and M2. The durative situation of excess liquidity made many adverse effects with our economy and finance. In microcosmic, it reduced banks' profits, increased the probability of risks in financial institutions. In macroscopical, it reduced the efficiency of finance resources, and put macro-control in a dilemma. The reason the form with excess liquidity of China's commercial banks, is not only the influence with environment of external macro economic, but also the influence of institutional factors with national economic and commercial banks' own. In substance, the excess liquidity of commercial banks is a concentrated expression of the illogicality in many kinds of deep-seated economic, and is the result of operation with liquidity in external and internal. To ravel out the problem of excess liquidity, tight monetary policy is an important means, but more important is resolving the influence of various factors that cumulated from the process of economy running. It has much limitation in this article, in particular Economic Background and, in view of the actual situation, and liquidity of commercial banks surplus at the time it is our economy and finance in a difficult to avoid the problem. As the international financial situation of the sudden change in liquidity problem of excess may no longer, but it does no harm to the article in the specific economy in a certain extent, the value and relevance to the future economy is also a guidance and warning. Based on the above analysis, the situation of our country, and the development of finance, this article put forward some policy advice that aimed at the environment and institutional construction, such as essential price marketization, monetary policy optimization, and capital market opening and developing, it also made explanations in financial situation. In the long term, the policy recommendations still have a more realistic and practical significance.