The Research Of Medium-sized And Small Commercial Banks’ Liquidity Risk In China

The status of small and medium-sized commercial banks in China’s bankingindustry is gradually increased, small and medium-sized commercial bank shave sprungup in various provinces and cities, they have played an increasingly important role in thefinancial markets. As financial institutions, the liquidity risk than small and medium-sizedcommercial banks face has become a research focus of concern to society.This paper focused on China’s small and medium-sized commercial banks ’liquidityrisk and the importance of liquidity risk, then it discussed the causes of China’s small andmedium-sized commercial banks’ liquidity risk, influencing factors and regulatoryindicators reveal the current situation and existing problems of China’s small andmedium-sized commercial banks’ liquidity risk, and its regulatory and prevention. In theconducting quantitative analysis part, I selected financial data of the Chinese Academy ofSocial Sciences, city commercial banks’ the balance data for RMB account from2002to2009to build GARCH model, and calculated the value-at-risk. Finally, I give somepolicy recommendations to strengthen China’s small and medium-sized commercial bankliquidity risk.