Research On The Construction And Early Warning Application Of Liquidity Risk Index Of China’s Banking System

Nowadays,all countries in the world are in the post-crisis era after the 2008 financial crisis.This financial crisis has had a profound impact on all countries in the world,and it has caused great damage to the world economy and assets.Until now,Some countries have just passed the darkness to usher in economic recovery.,while some countries are still trapped and the economy is growing slowly.The liquidity risk and systemic risk that played a major role in this crisis have gradually attracted the attention of governments and academic circles around the world,especially after the Basel Accord issued a series of policies for this crisis.The Party Central Committee,represented by Xi Jinping,pays special attention to financial risks,and in 2017 it was regarded as one of the three major battles,and even the first of the three major battles.In China’s financial system,the proportion of assets of banking financial institutions can reach four times the total proportion of assets of other financial institutions,so it is a good risk prevention for the banking industry.It is the top priority in preventing financial risks.However,whether it is domestic or foreign government or academic research on the risk of the banking industry,on the one hand,it is still based on the micro-individual liquidity risk research,but little research on the systemic liquidity risk of the entire banking industry;on the other hand,In the systematic risk research of the banking industry,there is no specific system liquidity risk.In view of this paper,the relevant impact indicators are selected to construct the liquidity risk index of China’s banking system by using the comprehensive index method.The Markov regional transfer model is used to warn the liquidity risk index of China’s banking system in the high risk interval.Through the construction of the systemic risk index of China’s banking industry,it is found that China’s system liquidity risk level is rising,and from the end of 2013,China’s banking system liquidity risk began to enter the medium risk level,and in more time,it is in the high risk zone,which should be paid attention to.In view of the fact that this paper selects the impact indicators from the macroeconomic,financial market and banking institutions,when the recommendations are made,the relevant policy recommendations for the liquidity risk management of China’s banking system are still proposed from these three perspectives.