Research Of XT County Agricultural Development Bank’s Liquidity Risk Management

At the beginning of the2007crisis, liquidity of financial institutions disappearedin the instant, but are difficult to recover in a long time, the central banks had tomoney market and even individual financial institutions to lend a helping hand,injected massive amounts of liquidity to the market support, even so, there are stillmany banks face down or restructure the risk issue though policy banks, in the face ofthe overwhelming the financial crisis, would inevitably impact. The head office ofagricultural issue restricted credit plan, a considerable portion of the loans were headunified deployment, but also further strengthen liquidity management with greaterliquidity demand deposits and interbank deposits and other liabilities, but in the faceof such a huge crisis, bank liquidity management on assets and liabilities appears verydifficult. This reveals an important problem: shortage of liquidity risk management,not professional, resulting in low cost of capital, the bank liquidity managementdifficulties, can only rely on the daily reported capital plan, liquidity loans personalapproval restrictive conditions than the "rigid" approach to control the bank’s funds,thus in the business development lost many opportunities and source. In this paper,the harm to the liquidity risk and discusses how to effectively prevent bank liquidityrisk, the liquidity risk management of UBS group as an example, through the exampleanalysis, the convection farming issue manifested in the crisis of liquidity riskmanagement is relatively weak phenomenon are analyzed, and to explore the relativecurrent management the method is more liquidity risk management measures areeffective, from a professional point of view to dig the effective way of themanagement of liquidity issue, use the theory and practical methods, analysis andResearch on liquidity management defects will XT County agricultural issuesexistence and the problems to be resolved to provide the worthy reference, measuresand implementation as the bank liquidity risk management.