Study On The Measurement Of Liquidity Risk Of Commercial Banks And Its Influencing Factors

In the commercial bank management theory, safety, liquidity and profitability are the main principles t. Liquidity is the important characteristics, and the fundamental of the two other principles. The liquidity of the commercial banks affects the development of the banks and the stability of our country’s financial framework. Finally, it may make a significant influence on the safety of our country’s economy.Based on the panel data of 10 Chinese commercial banks from 2004 to 2013, a comprehensive score indicator was constructed by using the factor analysis to measure the liquidity of the commercial banks. Result demonstrates that commercial bank’s asset quality, capital and liability structure, and capital ratio make a significant influence on the bank’s liquidity. The liquidity of the city banks is better than the state-own and middle limited liability banks. At the same time, the liquidity of the commercial banks presents a fluctuation rising trend from 2004 to 2013 and the condition of the banks’ liquidity has been improved. Meantime, we analyze the internal and external factors which affect the liquidity of the commercial banks. We concluded: first, the internal factors make a significant influence on the commercial bank’s liquidity; second, Gross Domestic Product is the main external factor, making influence on the commercial bank’s liquidity. Finally, we conclude and give the advices to the liquidity of the commercial banks.