The Effect Of Leverage Ratio On Liquidity Of China's Listed Commercial Banks

The rapid development of China's economy is inseparable from the rapid prosperity of the financial industry,and banks that play a greater role in economic development in the financial market.As a financial medium,banks play a vital role in the allocation of funds.Commercial banks in banks are the most active and largest"groups".Therefore,commercial banks play an irreplaceable role in the active financial market and economic development of China.The role.In recent years,China's rapid economic development has used a large leverage ratio.In order to cope with the large-scale systemic risks that may be caused by high leverage,China's macro and micro levels are "de-leveraging".In this environment,commercial banks are faced with the possibility that the entire macroeconomic "de-leverage" may result in the inability to recover assets.In addition,the commercial banks must face multiple levels of nesting within the regulatory requirements and reduce off-balance sheet assets to reduce leverage.Rate,these two aspects can easily cause the liquidity risk of commercial banks,and then decide whether commercial banks can "live".In view of the above problems,this paper analyzes the current situation of leverage and liquidity of commercial banks in China on the basis of other scholars'research.The paper also discusses the possible problems of commercial banks in the process of leverage management and liquidity risk management from four aspects:risk management and supervision mechanism,management,deleveraging and liquidity.Then,using data from 27 listed commercial banks in China and macroeconomic data such as CPI from 2013 to 2018,the relationship between leverage ratio and liquidity of commercial banks in China was analyzed through panel data model using Stata software.It also analyzes the internal and external factors affecting liquidity,and draws a conclusion that the three macro factors of internal leverage,consumer price index,market interest rate and money supply growth have significantly positive effects on the liquidity of commercial banks.Non-performing loan ratio and macroeconomic leverage ratio are opposite to their liquidity ratio.The impact of capital adequacy ratio and return on net assets on liquidity ratio has not passed the significant test.Through empirical analysis,it is concluded that:1.The three macro factors of listed commercial banks' internal leverage ratio and consumer price index,market interest rate and money supply growth rate have significant positive effects on the liquidity of commercial banks;2.The non-performing loan ratio of commercial banks and the macroeconomic leverage ratio have a negative effect on their liquidity ratio;3.The impact of capital adequacy ratio and return on net assets on the liquidity ratio of listed commercial banks has not passed the significant test.Finally,from the three aspects of supervision system,asset management and leverage management,the paper puts forward specific suggestions based on the status quo.Based on the empirical results of this paper,it puts forward suggestions for focusing on key indicators and long-term protection against liquidity risks.