Research On Liquidity Risk Management Of Commercial Bank In China

In recent years,with the rapid development of China’s commercial banks businessand the rapid expansion of overseas institutions,the dependence on the foreign banksimprove continuously,and theimpact on the domestic financial from externalenvironment significantly increased. Now,with the frequent break of crisis in theinternational financial market liquidity,the rapid spread of the terrible conductivityseriously affected the sound operation of China’s banking sector, the importance of liquidity risk management is increasingly prominent.This article started fromthe research on the commercial banks ’liquidity risk of domestic and foreign scholars, summarizes some various issues in China’s commercial banks’ liquidity risk management. These issues include: implicit guarantee of long-term credit weakened managers’ risk awareness and commercialbanks’ liquidity management,risk management are weak, backward technology, lack of liquidity risk management initiative, asset-liability management imbalance, the lack of liquidity of commercial banks dynamic regulatory control and early warning mechanisms. Then analyzed several prestigious international large banks’(Citibank, Deutsche Bank, Standard Chartered Bank and Mitsubishi Bank) risk management, to discuss its advanced experience and our commercial banks can learn from.Finally, specific recommendations are gave from both macro and micro.In China’s commercial banks’ liquidity risk management practices,transformation and delivery of internal riskaversion among banks not only from the macroeconomic environment and financial market reforms,to provide morecomprehensive system and mechanisms to promote the development of commercialbanks’ liquidity risk management, while also basedon the micro-management level,but also payattention to establish an effective monitoring and early warning mechanism and improve liquidity risk management techniques to prevent the occurrence of liquidity risk.