Research On Design And Implementation Of Management System Of Liquidity Risk Of Commercial Banks

After the outbreak of the financial crisis, China puts more and more emphasis onliquidity risk management. In order to strengthen commercial banks’ liquidity riskmanagement and maintain a safe and stable operation of commercial banks, ChinaBanking Regulatory Commission (CBRC) issued relevant guidelines to guide andsupervise the construction of liquidity risk management system of commercial banksin2009. From the perspective of commercial banks themselves, in the face of growingcomplex market environment and increasingly fierce competition in the bankingindustry, commercial banks should establish a robust and sound liquidity riskmanagement system. The research on the establishment of commercial banks’liquidity risk management system has important strategic significance.This paper mainly discusses the design and implementation of China’scommercial banks’ liquidity risk management system. Firstly, this article definesliquidity, liquidity risk and liquidity risk management systems, summarizes thetheories about commercial banks’ liquidity risk management, including assetmanagement theory, liability management theory and theory of integratedmanagement of assets and liabilities, laying a solid theoretical foundation for thedesign and implementation of commercial banks liquidity risk management system,and introduces current commercial bank liquidity risk management methodssystematically, namely index evaluation method and stress testing. Secondly，thispaper conducts the needs analysis and overall design of commercial banks’ liquidityrisk management system. The needs analysis includes overall system demand, mainlybusiness requirements and system data requirements. For the overall design, thispaper considers system design objectives, system design principles and liquidity riskmanagement system framework. Thirdly, this paper probes into the database design ofthe commercial banks’ liquidity risk management, mainly including the databasenaming rules, database structure design and database security design. This paperfocuses on commercial banks’ liquidity risk management system features modulardesign and implementation. Moreover, to make the research more comprehensive, thisarticle explores commercial banks’ liquidity risk management systems functionaldesign by the static index detection module and stress testing modules, then simulatesthese two modules respectively. This study will help commercial banks to improve efficiency and effectiveness ofthe liquidity risk management, and is of great academic value and practicalsignificance.