Study On The Impact Of Interbank Business Towards The Commercial Banks Fragility

Interbank business plays an indispensable role in the liquidity management of commercial banks,but the risks associated with excessive interbank business prosperity may greatly exacerbate the vulnerability of commercial banks.Under the background of capital adequacy ratio restriction,narrowing interest margins and the development of Internet finance,interbank business plays a more and more important and remarkable role in the business structure of modern commercial bank,because it occupies less capital,brings high comprehensive income and has strong innovation ability.It is a common phenomenon that the scale of interbank business grows faster than the traditional credit business.Initially the interbank business is to meet the needs of solving short-term liquidity.However,it becomes a tool used for regulatory arbitrage.Now,it becomes a main direction of China's ”banks' shadow”.During this process,there may exsit the problems of maturity mismatches,risk contagion,and so on,hiding some risks.Therefore,this paper evaluates the influence of interbank business on the commercial banks fragility,in order to promote the healthy development of China's commercial banks.This paper put forward the studying point by discussing the domestic and foreign documents about interbank business and commercial banks fragility.Secondly,it analyzes basic theories of interbank business and commercial banks fragility.The third chapter begins with the basic situation of 16 commercial banks,and analyzes the mechanism and affect of interbank business towards the commercial banks fragility.The fourth chapter is this paper's empirical analysis.It chooses annual data from 16 commercial banks and uses Co Va R to calculate the fragility of commercial banks.Then it choose proxy variables of interbank business and several control variables to build a panel data model.Finally,it puts forward interbank business policy suggestions from the commercial banks and the regulators according to the result of empirical analysis.