China's Commercial Banks Liquidity Optimization

It's an important thing that the commercial bank have enough assets'liquidity. It is the prerequisite for the commercial banks' operation.If one bank doesn't have enough liquidity,it'll go into bankruptcy.However, we cannot get liquidity and profitability at the same time. The reality is that one asset have good liquidity but have bad profitability .In other words, if the banks want to obtain higher liquidity ,it should give up some profitability . Now the question is that there is or not a reasonable area, which makes both liquidity and profitability at good condition.This question is the focus of this paper.Fristly, this paper use empirical analysis the relationship between the every asset of commercial banks and liquidity.Then,according to the experprises of other countries and our countries,we get the reasonable area of commercial banks asset's indicators.Secondly,we used the modified indicators analyze the liquidity of the commercial banks .Then the fact is China's commercial banks' assets'liquidity are enough. Analysis the commercial bank's loans,we get the conclusion that the improved indicators of China's commercial banks is because of non-performing loans'cancellation.At the same time, we get the problem that the commercial bank have bad time structure of deposit and loan.Finally,according to the problems, we propose the corresponding suggestions,expecting making some trifle contribution to the liquidity management of our country commercial bank system.