A Study On Liquidity Risk Factors Of Rural Cooperative Financial Institutions Of China

Under the current background of slow economic recovery,there are still many unstable factors faced by Guangdong’s economic and financial operations.Among them,the major risks of banking institutions are concentrated in rural cooperative financial institutions epresented by rural commercial banks and rural credit cooperatives(hereinafter referred to as “Rural Cooperative Institutions”).Compared with other large and medium-sized financial institutions,Rural Cooperative Institutions generally do not have strong external financing capabilities and the ability to self-define risks,and the possibility of liquidity risk is high.Therefore,for the financial management department,from the macro perspective,it is extremely urgent to strengthen the ability to analyze and warn the liquidity risk of Rural Cooperative Institutions.Firstly,this paper simply sorts out the related theories of current liquidity risk management,combines the regulatory requirements and operating characteristics of current domestic Rural Cooperative Institutions,and focuses on the factors that affect the liquidity risk of Rural Cooperative Institutions and their operational mechanisms.This article believes that the current asset quality is the main factor affecting the liquidity risk of Rural Cooperative Institutions.It influences the liquidity risk status of Rural Cooperative Institutions through the asset-liability structure,capital channels,price channels for non-credit assets,and interbank lending channels.Secondly,based on the 2011-2016 annual operating data of 92 Rural Cooperative Institutions in Guangdong Province,this paper uses STATA statistical software to conduct empirical research and stress testing on its factors.The following conclusions have been drawn: The state of debt structure of Rural Cooperative Institutions is the main influencing factor of overall liquidity management.Among them,simple liquidity management factors are focused on shorter durations,and funds and capital pressures brought about by regulatory compliance standards need to be increased on longer terms.In the asset structure,the realization strength of various assets is directly proportional to the impact on the liquidity management of Rural Cooperative Institutions;in a longer period,the ratio of interbank assets and interbank liabilities has a more significant impact on the liquidity of Rural Cooperative Institutions.At the same time,through the conduct of stress tests,this paper believes that the current anti-liquidity risk capability of Guangdong’s Rural Cooperative Institutions can effectively resist the situation of substantial decline in asset quality.Finally,in combination with the current management methods of the financial management department,it puts forward ideas for the supervision of the liquidity risk of Rural Cooperative Institutions and the rescue methods,as well as suggestions for improving the liquidity risk management of Rural Cooperative Institutions.