Impact Assessment Of China 's Payment System On Commercial Bank' S Liquidity Risk Management

Since the global economic crisis in2008, the liquidity risk management ofcommercial bank has arose much attention among the supervision organizations andresearch institutions all over the world. Many supervision methods and researchresults are not applicable in current economic situation, and it is more and moreessential to enhance the liquidity risk management of commercial banks. The studyon liquidity risk management has a later beginning in China, with main focus on theinternal factors affecting the liquidity risk management, and there is still lessattention to the external factors.Based on the mentioned background, with the situation that the secondgeneration payment system is going to be put into operation in China, the thesisanalyzes the factors affecting the liquidity risk management of commercial banks inChina, and summarizes the characters and factors of commercial bank liquiditychanges, based on the thorough research of the liquidity fluctuations of commercialbanks. The thesis emphasizes on the influence and affecting mechanism of paymentsystem to the liquidity risk management of commercial bank, in hope to figure outthe interaction between payment system and commercial liquidity risk management.The thesis finds out that the liquidity risk management of commercial banks inChina is affected by both internal and external factors, and the latter consists ofcurrency policy, finance development extent, international capital flow and financialinfrastructure. Functioning as fundamental financial infrastructure, payment systemin China has influence on the liquidity risk management of commercial bank on bothmacroscopic and microscopic views. With the facilitation of empirical analysis basedon VAR Model and Granger Causality Tests, it is concluded that payment system inChina has the greatest influence on the liquidity risk management of commercialbank, from which we can also reach that once the payment system is confronted withirresistible disaster or fault, the liquidity risk management will face huge risk.Therefore, it is crucial to improve payment system disaster copy and emergencymanagement, and commercial banks should also attach high attention to its internalsystem construction and accelerate the perfection of its regulations on liquidity riskmanagement.