The Impact Of Shadow Banking On Liquidity Risk Of City Commercial Banks

In 2008,the financial crisis broke out in the United States,and the concept of shadow banking began to appear in the past decade,China’s financial system has been developing continuously.It has become an important business for financial institutions to expand profit channels and expand asset scale.At the same time,in the financial system,asset revitalization and credit creation have also been greatly affected.China’s shadow banking business is closely related to commercial banks and other financial institutions.The main reason is that China’s commercial banks are generally faced with multiple regulatory constraints and restrictions on liquidity indicators such as credit scale,capital adequacy ratio and deposit loan ratio.In addition,with the deepening of interest rate marketization reform and the influence of national macro-control,which makes the interest margin space compressed and makes it possible to expand developing new profit areas and avoiding regulatory constraints,shadow banking has become the most sought after business of most types of commercial banks.With the development of shadow banking,there are some problems,such as risk preference,mismatch of investment products,high leverage ratio,opaque investment target,asymmetric information and so on,which easily lead to credit risk,interest rate and market risk,thus leading to liquidity risk,and even systemic financial risk of the whole financial industry.City Commercial Bank is the abbreviation of city commercial bank,which belongs to a special existence.It originated from the local financial system.After expanding the scale of assets and liabilities through the development of different industries,the scope of operation is restricted by the supervision.At present,many commercial banks begin to develop shadow banking business in order to obtain high profits,but at the same time,there are some risks in capital and debt.When the shadow banking business produces liquidity risk,it will bring great impact to commercial banks.This article focuses on the impact of shadow banking on the liquidity risk of commercial banks.First of all,the literature about shadow banking and bank liquidity risk at home and abroad is consulted to provide the theoretical basis for this study.Then,it analyzes the current situation,industry characteristics and development trend of shadow banking,through the in-depth analysis of the development characteristics of urban commercial banks,it is found that urban commercial banks are weak under the rapid expansion.If urban commercial banks vigorously expand the shadow banking business,the vulnerability and liquidity risk of urban commercial banks may be increased.Finally,the author selects 31 city commercial banks with relatively large assets scale as the research object and investigates their data from 2010 to 2019,and confirms the conclusion that the larger the proportion of shadow banking scale is,the higher the liquidity risk is.In addition,the liquidity of bank assets will be affected by debt ratio,capital adequacy ratio,net income ratio and other indicators.Finally,this paper uses the method of combining theory and practice,selects liquidity indicators to measure the liquidity of urban commercial banks,hoping to play a complementary role to the existing research.