China's Commercial Banks' Liquidity Management

Liquidity management occupies a vital position in the operation and management of commercial banks, especially for China's commercial banks. Liquidity management plays a role that cannot be overtaken on the profitability of commercial banks and the realization of security. At present, China's commercial banks faced with a prominent problem in the operation and management, which is the inability of liquidity management. And this caused commercial banks inefficient, generating the phenomenon of liquidity surplus. Taking effective action to address this issue which is related to China's commercial banks in the financial area after full financial liberalization, which is the key to competitive and independence. Therefore, this paper focuses on commercial bank liquidity management, and proposes some relevant policy recommendations.With the progress of financial innovation and the rapid development of financial derivatives, commercial banks should strengthen liquidity management to adapt the great financial big bang. Now China's commercial banks are in a relatively sensitive period. This paper makes a study in the context of commercial banks' public issue and the appearance of liquidity surplus. Therefore, the purpose and significance of this study is obvious. In short, studies about China's commercial banks on liquidity management are of great practical significance for the development of commercial banks.The content of the article includes four chapters: Chapter I introduces the background and significance of the study, and makes an overview on domestic and foreign literatures. Also, the research methods of this paper are discusses in this chapter. Chapter II describes some relative theory on the liquidity and liquidity management of commercial banks. On the basis of the first two chapters, chapter III discusses the status quo of China's commercial banks liquidity management and existing problems, and makes an explain on the inadequate management. In the meanwhile, this chapter discusses the liquidity surplus of commercial banks which is a result of inadequate management. Chapter IV proposes some advices and proposals on current problems in the liquidity management of commercial banks.