Research On The Cash Management Of Commercial Banks Of Jinan City

Cash,as a transaction intermediate which can be exchanged immediately,is a powerful asset with high liquidity in the marketplace.Considering the social developing stage of China and the characteristic of nation economic,it will last for a long-term that the fact of absolute volume of cash will increase in spite of new ways of payment come along and coexist in a period.Along with the continuing growth of GDP and GNP,the number of flowing cash(MO)will go further at the same pace.As one of the main administrator of cash,commercial banks fulfill the basic mission in cash withdrawal and expenditure,in addition,take the critical responsibility of maintaining the order of liquidity of cash flow.Moreover,commercial banks are the lubricant and booster which guarantee the firms and individuals basic need of cash and assure the measures of payment through various cash management.For defending Renminbi as the image of our country,cash management is becoming an important factor and inevitable issue for commercial banks' daily operation.Along with each stage of cash management,this paper which applying research methods of literature research,questionnaire,data analysis and case study analyse the state quo of cash management among commercial banks in Jinan with,identify the problems and find the reasons in cash flow circle around releasing,withdrawing,distribution,deposit and Interbank agency related business,analyse today and future's environment around cash management.At the same time,with data analysis in cash management operation,it produce the cash management index which combines with four individual indexes of infrastructures coverage,cash quality,usage of cash service,management cost in commercial banks helping to measure the level of cash management.According to the survey taken from cash management level in commercial banks in Jinan,this paper makes identical suggestions to each area of cash management.The study showing commercial bank should make the cash management moving to regularly,specific,managerial direction.Commercial banks need to reinforce storage construction management,take advantage of their role as cash impounding reservoir,make cash flow back smoothly,find the new way for cash withdraw,develop cash demand management to assist distributing cash and establish cash center to ensure circulate cash in a proper way.On the other hand,the commercial bank should promote business in cash collection and distribution towards market demand which not only gets used to the market environment but also cut the cost,hedge the risk and makes daily work more efficient.It is pointed that cash flow management should be undertaken by commercial banks while,with the business of cash management developing into many specific areas,the supervising authority and the government department also need to coordinate to get through the bottleneck of cash management.The paper also guide commercial banks how to build a feasible,sound,efficient system in cash management and find a way to improve cash management level.