The External Research Of Liquidity Risk In Our Country’s Commercial Banks

Liquidity is one of the principles in commercial bank management, which also bethe lifeline to maintain the existence and development of the commercial bank.TheFinancial crisis in2007,many financial institutions, which were adequate in capital,went bankrupt eventually. The most important reason was the lack of liquidity. Fromthe event, we could see the importance of the liquidity to the commercial banks andfinancial institutions. After the crisis, The Basel committee attached great importanceto the liquidity risk and then they passed the Basel Accord Ⅲ quickly. In BaselAccord Ⅲ,It gave clear rules of the liquidity risk’s identification, measurement andmonitoring. The time to get the standard also be arranged. The main purpose of thesewere to control the liquidity of commercial Banks, thus to put forward more strictrules for the liquidity risk’s management. At the same time, The Basel Accord hadspoken about the externality of liquidity risk. The Accord required the commercialbanks to value the management of the liquidity risk and gave some detail ways tomonitor them. The regulatory authorities were asked to pay equal attention to themicro-prudential regulation and macro-prudential regulation too.This paper put forward the concept of the externality of liquidity risk through theintroduction of commercial bank liquidity risk theory and externality theory andanalyzed the commercial bank liquidity risk’s externalities using the cost-benefittheory. In addition to theoretical analysis, this study made an analysis of the currentsituation about the liquidity risk in Chinese commercial Banks. Using many index likeNSFR, deposit-loan ratio, liquidity ratio and liquidity gap. At the same time, thispaper analyzed the influence of liquidity risk to the macro economic operation. Basedon all the research above, the study took the12listed commercial Banks as a sampleand used the panel model proving that commercial bank’s liquidity risk had anexternality to the macro-economy. In order to eliminate the influence of factors suchas assets, this paper made a separate research to the state-owned commercial Banksand joint-stock commercial Banks. The result showed that the liquidity risk itself and the bank credit channels existednegative externality to macro-economy, and through the channels of monetary policythere was a positive impact to the macro economy. The subsample’s results werealmost consistent with the whole sample. But the joint-stock Banks’ liquidity risk bycredit channel had no significant impact on the macro economy. It may be related tothe pursuit of profit. Through a system analysis of the empirical results, combinedwith the way solving externalities in economic, this paper gave three advicesrespectively from the Banks’ liquidity management level, regulation level andfinancial market to reduce the commercial bank liquidity risk’s externalities.