An Empirical Research On The Influencing Factors Of Commercial Banks’ Liquidity Risk

The level of commercial banks’liquidity reflects the bank’s operational risks. Thebank’s main business is the management of assets and liabilities. It will appearliquidity risk while the bank’s structure of asset and liability has problems. Theproblem of excess liquidity of commercial banks has always been the focus of theresearch, while in2013China’s commercial banks have a liquidity crisis in brief.Liquidity crisis comes from excess liquidity, which is more worthy of ourconsideration is what factors make the banks’liquidity state change.Commercial banks as a financial intermediary play an important in connecting thewhole economic, so it is also affected by a lot of factors. Through analysis of theprevious researches, we think that the main factors come from three aspects, the firstone is commercial banks’management, the second is the banking structure adjustment,third is related with the change of economic environment.The chapter one is the introduction, which illustrates the research background andthe significance of the article, describes the content and framework briefly, introducesthe research ideas and the main method, as well as the innovation points of the thesis.The chapter two summarized the basic theory and reviews the academic literature.We illustrate the concept of commercial banks’liquidity and liquidity risk. The sourceof liquidity risks come from three aspects including banks’ vulnerability, asymmetricinformation between banks and interbank risk contagion. The research on liquidityrisk mainly from two aspects, one is from the banking liquidity perspective, the otherone is from the micro perspective of the commercial bank.The chapter three studied the banks’ liquidity situation and analyzed theinfluencing factors in theory. Analyzing the “money shortage” phenomenon and itscauses, we studied the volatility of SHIBOR. Through liquidity ratio, deposit loanratio and excess reserve rate describe the overall liquidity. The analysis of internal andexternal factors influences the liquidity of commercial banks. The chapter four studied the influence factors of liquidity risk through theempirical method. Considering the internal factors and external factors are differences,we do the studies respectively. From the analysis of the whole commercial banks, wepay more attention to the change of the macroeconomic situation and the bankingsector. Macroeconomic factors include the economic growth and the growth of M2,the banking sectors is mainly related to the degree of market concentration and thegrowth rate of total assets. From the perspective of the listed commercial banks, wepay more attention to the banks’differences. We mainly consider regulatory indicatorsand financial indicators.By means of least square regression, we found that there is a significant negativecorrelation between liquidity ratio and the growth of M2, the concentration of thebanking market, interbank interest rate. There is a significant positive correlationbetween liquidity ratio and the growth rate of total assets.Through the panel data regression model, the general model of the listed banks,there is a positive correlation between liquidity ratio and the capital adequacy ratio,the average rate of return on total assets, net asset growth ratio. In the large listedcommercial banks model, there is a negative correlation between liquidity ratio andthe growth rate of net assets. In the small listed commercial banks model, there is apositive correlation between liquidity ratio and the average rate of return on totalassets, net asset growth ratio.The chapter five draws the conclusion. Based on the overall commercial banks’liquidity model, we find that the monetary steady can improve the level of bankliquidity; at the present stage, lower the access standard of the bank entry can reduceliquidity risk; through the management of the interbank market rate, the central bankcan achieve effective management of the commercial banks’ liquidity. Based on themodel of listed commercial banks, we find that the supervision of capital adequacyratio can reduce liquidity risk; in our study time, the banks’ high profit will make ithas high liquidity; there is a positive correlation between the ability of growth and thebank’s liquidity, which is consistent with the overall commercial banks’ liquiditymodel, but in the large listed banks’ model, we draw the opposite conclusion which may relative to the size of the banks. We analyze the present situation of the liquidityand draw relative conclusions.