Research On Liquidity Management Of Commercial Banks Based On Financial Inovation

Safety, liquidity and profitability is the basis for the survival of commercialbanks, among which liquidity is the lifeblood of the commercial banks. The bodacioussubprime crisis in the show that the shortage of liquidity will not bring significantimpact on commereial banks under the normal condition of capital markets，however，the liquidity crisis may be caused on some extreme circumstances and possiblybecome the major risk for bankrupt of banks. Therefore, to maintain appropriateliquidity to commercial banks eriesson in the customers and conduct marketfundamental. Commercial banks only to maintain a more adequate liquidity to meetwithdrawals requested loan demand and loan to ensure their safety and profitability.But not liquidity as possible, the excess liquidity will lead to decline of idle resourcesand benefits; Lack of liquidity, not only would force commercial banks to pay ahigher price to add liquidity, and loss of customer trust, resulting in a shrinkingbusiness, even when serious cause customer bank runs, induced by the financial crisis.This article by the analysis of the commercial banks’ liquidity management andfinancial innovation theory, multi-discipline knowledge of the integrated use ofmanagement science, operations research, statistics, financial engineering,econometrics and economics liquidity management as the core, from the point of viewof financial innovation to build the commercial banks liquidity risk managementmechanism, designed to be able to provide some theoretical reference for liquidityrisk management of commercial banks.In this paper, main line of liquidity management of commercial banks fromthe point of view of financial innovation depth inquiry.First, this paper expounded inthe liquidity of commercial banks and financial innovation theory based on theanalysis of the logical link between financial innovation and liquidity risk of financialinnovation is an important means to solve the problem of commercial banks’ liquiditymanagement, which is the premise of the study;Secondly, from four aspects of thesystem, techniques, tools, and market the systematic study of the commercial banks’liquidity management innovation path, and given the general strategy of liquiditymanagement;Thirdly, through the establishment of evaluation index system, usingfactor analysis of the actual data to reflect the level of China’s commercial banks’liquidity management analysis and evaluation of the factor analysis based oneconometric modeling method to build multiple regression modelempirical analysis toimprove the development of China’s commercial banks’ liquidity managementstrategy and specific recommendations are made on the basis of systematic analysis ofthe empirical results.