Research On The Impact Of Inter-bank Business On The Liquidity Risk Of Joint-stock Banks

The development of financial disintermediation and interest rate liberalization has increased the competition among joint-stock Banks and the interbank business has developed at a very fast speed.The original intention of inter-bank business is to alleviate the short-term liquidity shortage faced by some Banks,but with the innovation of inter-bank business,the innovative business model broadens the profit ways of Banks and becomes a new profit growth point for joint-stock Banks.With the occurrence of the "money shortage" events in 2013 and 2016,the liquidity crisis in the financial industry caused by the development of inter-bank business has attracted extensive attention from the CBRC and the academia.No.8 document of CBRC in2013 is the beginning of strict supervision of inter-bank business,In 2017,CBRC document no.46 carried out special governance on the inter-bank business with high leverage,multiple nesting,long chain and multiple arbitrage,aiming to decrease the unreasonable expansion of the business.No.4 document of CBRC in 2018 requires correcting the interbank businesses which violate laws and regulations.Scholars have conducted a lot of research on inter-bank business by classifying Banks according to their nature and types.However,in the classification of Banks,scholars mainly study joint-stock Banks together with state-owned Banks as large and medium-sized Banks,and few literatures study joint-stock Banks alone.However,the share of inter-bank business of joint-stock Banks is the largest and most representative,and no unified conclusion has been reached.Therefore,this paper takes joint-stock Banks as the research object to discuss the impact of inter-bank business on liquidity risk of joint-stock Banks,enrich relevant data in the field of bank liquidity risk,and provide some references for joint-stock Banks to steadily promote inter-bank business and strengthen liquidity management.On the basis of previous studies,this paper selects 12 joint-stock Banks in China as the research objects and uses the PCA(principal component analysis)method to measure the liquidity risk of joint-stock Banks.The fixed-effect model was established using the non-equilibrium panel data from 2002 to 2017 to study the impact of inter-bank business on the liquidity risk of joint-stock Banks.Liquiditylevel was taken as the dependent variable,and the ratio of inter-bank debt business was taken as the core explanatory variable,and the control variable was added for research.The results show that inter-bank business will reduce the liquidity level of joint-stock Banks and increase the liquidity risk.On the basis of this research,this paper puts forward relevant suggestions to joint-stock Banks and regulators.Joint-stock Banks can steadily promote the development of inter-bank business,strengthen the internal supervision of Banks and stabilize the sources of liabilities.The regulators can properly grasp the supervision intensity,strengthen real-time monitoring of inter-bank business,and define and classify inter-bank business to make inter-bank business to perform its initial function of reducing liquidity risk.