Research On Liquidity Risk Management Of Industrial Bank

In recent years,with the development of China’s financial system more and more perfect,investors’ demand for funds also increases rapidly.But at the same time,the more complex business environment,more diversified sources of assets and liabilities and business types of commercial banks also make commercial banks show many deficiencies in the context of rapid development.Strong uncertainty,high destruction intensity and high complexity are the important characteristics of liquidity risk.If we do not pay enough attention to it,commercial banks will not have a reasonable and effective response plan when facing sudden liquidity problems,which will often lead to serious losses and even close to bankruptcy liquidation,which also attracts more and more attention from various peer institutions and investors Questions.Taking industrial bank as an example,the liquidity event of Industrial Bank in 2013 has aroused the attention and attention of the financial sector.The research on liquidity risk is conducive to the bank to reduce its own risk,and it is of great significance to the stable operation of the financial market.Therefore,it is necessary to analyze its liquidity risk to reduce the possibility of such risk.Based on the theory of liquidity risk and literature review,this paper analyzes and expounds the liquidity problem of Industrial Bank.The first chapter is the introduction,which mainly introduces the background,purpose and significance of the liquidity risk research of Industrial Bank,and summarizes the research status of commercial banks from domestic and foreign perspectives.At the same time,it briefly expounds the main research content,research methods and shortcomings of this paper.For the sake of preciseness and rationality of the article,the second chapter,combined with the development requirements of commercial banks in different periods and the corresponding theories,systematically discusses the writing basis of this paper,summarizes and refines the definition of liquidity in different periods,determines the understanding of liquidity in this paper,and also expounds the liquidity risk from multiple angles,so as to develop the banking industry This paper focuses on the Liquidity Theory in.The current management theory of China’s commercial banks is the combination of assets and liabilities.Through the adjustment of the structure of assets and liabilities,the balance of security,liquidity and profitability is achieved,which also provides a theoretical basis for the selection of liquidity indicators in empirical analysis.Only theoretical analysis obviously can not explain the problems of Industrial Bank.In order to elaborate the liquidity problem of Industrial Bank in detail,the third chapter is liquidity risk analysis of Industrial Bank.First of all,with the help of five representative liquidity indicators,the paper analyzes and introduces the current situation of liquidity risk of Industrial Bank of China,so as to have an overall understanding of its liquidity risk status.Secondly,it describes and analyzes the causes of liquidity risk of Industrial Bank from the perspectives of overdue loans,insufficient provision of non-performing loan ratio and asset liability structure.Based on the above theoretical discussion and current situation analysis,this paper uses factor analysis method to analyze the liquidity risk of Industrial Bank of China from 2009 to 2018 by selecting a total of 12 liquidity indicators from asset side,liability side and profitability.It is concluded that the 12 indicators affecting the liquidity risk of industrial bank can be summarized as capital structure,credit quality and profitability Three liquidity risk factors.By calculating the comprehensive score of Industrial Bank and comparing it vertically,the change of risk level can be reflected more intuitively.The fourth chapter is the improvement measures of liquidity risk management of Industrial Bank.Based on the full analysis and understanding of the influencing factors of liquidity risk of Industrial Bank,the current situation of liquidity risk level of Industrial Bank and relevant empirical conclusions,the improvement measures and suggestions are mainly put forward from the aspects of improving the liquidity risk measurement and evaluation system,stabilizing the sources of funds and optimizing the structure of assets and liabilities.