A Comparative Study On Structure Of Liabilities Of The Industrial And Commercial Bank Of China And Deutsche Bank And Its Revelation

Liability business of commercial banks is an important means of financing, and it is a prerequisite for commercial bank management. Liabilities structure determines the quality of business development. The main source of funds to liabilities business of Chinese commercial banks is deposit for a long time. Recently, as the interest rate liberalization and the deposit insurance system will be implemented, the cost of commercial bank deposits increase, and the fluidity is not good. In this way, the traditional way of liabilities is difficulty to continue. Therefore, we need to learn from the financial market which is relatively mature and whose liability structure of commercial banks. And make more innovative products and services further. Continuously adjust and optimize its liabilities structure and improve overall competitiveness.In this paper, start from theoretical research, Select Commercial Bank of China and Deutsche Bank as the representative of commercial banks in Chinese and Germany respectively. Analyze liability structure from two major areas. Analyze passive liabilities firstly, then analyze initiative liabilities which are borrowing from the central bank, Interbank liabilities, financial liabilities and bond liabilities. Then explore the differences between the two bank’s liability structures. And get some inspiration that the interest rate liberalization, establishment of a deposit insurance system, and a proper propensity to save and expectations of income and expenditure will help improve the liability structure. Finally, there are some suggestions about optimizing the liabilities structure of China’s commercial bank. For example, make a deposit product innovation; steady increase in interbank liabilities and derivative financial liabilities; establish a sound and effective technology management to avoid risk of liability business; implement asset securitization.