Research On The Liquidity Risk Management Of JY Rural Banks

Liquidity risk is known as the "most fatal risk",of commercial banks.Although the probability of occurrence is small,it is highly uncertain,destructive and diffusive.Once it breaks out,it will bring great survival crisis to small and medium-sized financial institutions in rural areas.JY village bank was established in November 2010 as a new rural financial institution under the three line city in Suzhong area.Like other commercial banks,it needs to adhere to the three principles of profitability,liquidity and safety and enhance its comprehensive strength.However,the main customers of the village bank are the "three rural" groups with high risks.On the one hand,the village bank is small in scale and the risk management mechanism is not perfect;on the other hand,the liquidity risk management level of the village bank is low,and the ability to resist the liquidity risk caused by external environmental changes or internal crisis transformation is weak;this has seriously affected the health and stability of JY village bank.Operation and development.Therefore,in order to better serve the local rural economy and build a more harmonious and healthy financial environment for rural areas,it is of great practical significance to study the liquidity risk management of JY village banks.Based on the liquidity risk management theory,the liquidity risk management system of commercial banks and the liquidity risk index measurement method of commercial banks,this paper studies the liquidity risk management of JY village banks.Firstly,through the relevant theoretical research and current situation analysis,the liquidity risk management of JY village bank is analyzed;secondly,according to the analysis results,the problems existing in the liquidity risk management of JY village bank are described one by one,and the deep-seated reasons are further explored,and the lack of liquidity risk management and capital in the operation process of JY village bank are summarized.The problems of liquidity risk management caused by unbalanced allocation of assets and liabilities,weak emergency management ability,insufficient day liquidity monitoring and lack of professionals are discussed Finally,according to the problems and reasons of the study,effective suggestions on how to strengthen the liquidity risk management of JY village banks in various aspects are put forward.This paper finds out the root cause of JY village bank's weak liquidity risk management through research,and puts forward relevant optimization strategies of wisdom management,hoping to improve the level of liquidity risk management of the village bank,reduce the probability of liquidity risk occurrence,so as to enhance the bank's sustainable development capacity,and hope to be able to similar rural areas.The liquidity risk management of small financial institutions should be improved for reference.