Liquidity Risk Measurement Of Rural Commercial Banks In Jiangsu Province And Its Influencing Factors

The Law of the People's Republic of China on Commercial Banks clarifies the three principles of “safety,liquidity,and efficiency” of commercial banks in China.The liquidity principle refers to the fact that commercial Banks have the ability to pay customers' demand for funds such as withdrawing deposits and withdrawing loans at any time.Liquidity risks will occur when commercial Banks are short of liquidity.Liquidity risk occurs when a commercial bank is unable to obtain sufficient funds timely at a reasonable cost to pay maturing debts,fulfill other payment obligations and meet other capital requirements for normal business operations.Liquidity risk,due to its uncertainty and strong infectivity,can easily cause systemic financial risk.Especially the financial crisis in 2008 and the repeated "money shortage" events of China's commercial Banks in 2010,2013 and 2016 all indicate that China's commercial Banks are facing severe liquidity risks at all times.Compared with other commercial banks,rural commercial banks,which regarded as small and medium-sized commercial banks always meet some problems such as single business,small scale,limited geographical area for business,insufficient management capacity,lack of awareness and using obsolescent methods for liquidity risk management.Based on this,this paper analyzes the liquidity risk status and its influencing factors of rural commercial Banks in jiangsu province,and proposes countermeasures for how to prevent liquidity risks.The main body of the paper takes "the analysis of the liquidity situation of rural commercial banks in Jiangsu Province-constructing a comprehensive measure of liquidity risk-empirical research on the factors affecting the comprehensive index of liquidity-put forward corresponding countermeasures and suggestions" as the study framework.By selecting eight liquidity risk basic evaluation indicators,and used the factor analysis method to construct a comprehensive measurement index of liquidity risk of rural commercial banks in various cities of Jiangsu Province.Then panel data regression model was used to model the factors affecting liquidity risk,and explore the main factors affecting the risk of rural commercial mobility in Jiangsu Province from both internal and macro factors.The research shows that the liquidity risk of rural commercial banks in Jiangsu Province is generally stable,but the liquidity risk of rural commercial banks in different cities presents different characteristics,and the liquidity status is significantly affected by GDP growth rate,interbank offered rate,asset term structure,preparation of coverage,asset profitability.Finally,based on the research conclusions,This paper puts forward corresponding countermeasures and Suggestions on how to improve the liquidity risk management level of rural commercial Banks in jiangsu province.