An Empirical Study Of The Impact Of Consumer Financial Development On Liquidity Of Commercial Banks

With China’s economic development entering the new normal,the demand structure has undergone tremendous changes,and consumption plays an increasingly important role in promoting the economy.According to the data released by the National Bureau of statistics,from 2013 to 2016,China’s consumption contribution to the growth rate of GDP is more than 50%,consumption is becoming an indispensable booster for China’s economic growth.With the increasing prosperity of consumption,the gradual change of consumption concept,the development of industry and the continuous progress of technology,consumer finance has ushered in the golden age of development.The development of consumer finance can promote the consumption of residents,guide the optimization and upgrade of the economic structure,and improve the asset structure of commercial banks and other consumer finance companies,and constantly broaden the channels of customers,increase economic benefits.But what can not be ignored is that when the rapid development of the consumer financial business will inevitably have a certain impact on the liquidity of banks.At present,there are many researches on liquidity of commercial banks at home and abroad,but most of them focus on the influencing factors of liquidity risk and the management of liquidity risk.At present,there is no more literature on the study of consumer finance to analyze its impact on the liquidity of commercial banks.Based on this,this paper,guided by the background of the rapid development of China’s consumer finance,further deepens the understanding of the impact of consumer finance development on the liquidity of commercial banks by qualitative and quantitative analysis of the liquidity of consumer finance and commercial banks.This paper first reviews the relevant literature on the liquidity of commercial banks and the development of consumer finance.Secondly,from the concept and theory of consumer finance,this paper analyzes the influence mechanism of the development of consumer finance on the liquidity of commercial banks.At the same time,we make a preliminary judgement on the relationship between the scale of the development of consumer credit and the liquidity of the commercial banks.Finally,the paper establishes a panel data model with 2011-2016 years’ listed banks in China,and makes empirical test and analysis with the method of quantitative analysis.In this paper,the theoretical and empirical research results show that:(1)in the liquidity test model explanatory variables in the liquidity ratio,we find that there is a negative correlation between the liquidity ratio and consumer finance business development of commercial banks,commercial bank liquidity decreases with the expansion of consumer financial services.(2)the occurrence of non-performing loan rate will enhance the negative effects of the development of commercial banks’ consumer finance and liquidity.The higher the NPL ratio is,the stronger the negative impact will be on the development of consumer financial business and the liquidity of commercial banks.Therefore,we can not ignore the impact of the future consumer financial development on the liquidity of commercial banks,we need to continue to strengthen the research in this area,strengthen the ability to defuse liquidity risks.The innovation of this paper is mainly reflected in the following aspects: first,through the present situation of the rapid development of China’s consumer finance to analyze the impact on the liquidity of commercial banks,to provide a new perspective and new research content;second,to quantify the consumption of financial development index,provides a new research method for empirical test.