The Research On The Bank Of Communications’ Method To Calculate The Enterprise’s Liquidity Loan Demand

China Banking Regulatory Commission (CBRC) released Liquidity LoanManagement Tentative Procedures in February of2010, which required banks to modifythe mode of approving loans which used to emphasis on the borrowers’ capacity ofrepayment. And the new stress should from the inquiry of the real demand of liquidity loan.Then，the Procedure regulated that financial institutions should measure the liquidity loandemand of the borrower and provided some standardized framework for banks. However,these measurements in standardized framework are not described explicitly. So eachinstitution applied them to different extent, which makes the reports between banks areincomparable. Meanwhile, there are some faults in the framework and the application of itmay contain errors. As a result, the way banks are conducting to make sure the line ofcredit is not reliable.On the background of J bank，we analysis the calculating method about liquidity loandemand of J bank and find the following problems: the calculating method about liquidityloan demand of J bank doesn’t clarify the range of the credit varieties which should beincluded in the liquidity loan in framework; there are conflicts between the data basis andthe definition of liquidity loans in framework; the calculating method about workingcapital doesn’t consider the all projects of the working capital and the turnover for everyproject is not selected properly; J bank doesn’t provide the quantitative calculation methodof assurance coefficient; the ways to calculate the amount of working capital from thecompany’s own funds, existing liquidity loans and other channels are not reasonable.According to the problems, we identify the credit varieties with converse thinking andconsider the all projects of the working capital from the perspective of managerial balancesheet. In addition, we classify these proJects and definite the turnover for every projectaccording to the cycle of purchase-production-sale. On the other hand, we calculate theassurance coefficient by the pressure test and use the balance equation of managerialbalance sheet to calculate the amount of working capital from the company’s own funds,existing liquidity loans and other channels totally not respectively. Finally, we demonstratethe improved method using Company M as an example to prove it operable.