Research On Liquidity Risk Management Of H Village Banks In Ningxia

In recent years,China’s economic growth has slowed down,and due to the impact of COVID-19,the macro environment has presented a complex and grim situation.In view of this situation,China firmly grasps the general tone of ensuring stability and seeking progress in maintaining stability,and makes solid progress in high-quality development.Financial is the lifeblood of the economy,and as the main force of the financial market,banking financial institutions affected by interest rate marketization,to occupy more market share,the Banks,improve the core competitiveness,improve innovation level,launched a variety of financial products,competition,which leads to the banking financial institutions run event probability increases,thus increasing the variety of financial risk in the most deadly "liquidity risk" probability.As of June 2021,there were 4,608 banking financial institutions in China,including 1,642 rural banks,accounting for 35.63%.Most of the rural banks are distributed in the financial blank areas.After the development in recent years,they have gradually become an important force to practice "inclusive finance" and support the rural economic development.With the deepening of the rural revitalization strategy,they will play a greater role in the future.At the same time,some problems have also been exposed in the development of rural banks,such as high dependence on deposits and loans,single source of funds,and the non-performing loan rate has increased due to the environment in recent years,rural banks are facing increasingly severe competitive pressure and liquidity risks.Therefore,how to improve the level of liquidity risk management and do a good job in risk emergency management under the current complex situation is an urgent problem for rural banks.As a new force of banking financial institutions in Ningxia,its liquidity risk management is extremely important.First of all,by consulting the relevant documents and data of the liquidity risk management of H village banks in Ningxia,Using the liquidity risk management theory on this basis,Based on the current research situation at home and abroad,Starting from the liquidity risk management framework,risk management system,risk management process and liquidity indicators of H rural banks,Through both the qualitative and quantitative analysis methods,In-depth research and analysis on the current situation of liquidity risk management of H rural banks;Secondly,according to the analysis of the problems existing in the liquidity risk management of H village banks one by one,And deeply analyze the causes of the problem,It is concluded that the liquidity risk management framework of H rural banks needs to be improved,the liquidity monitoring and management level is insufficient,and the stress test is standardized,Insufficient early warning,unscientific asset and liability business management,lack of liquidity risk management professionals and other problems;Finally,it puts forward optimization suggestions to improve the liquidity risk management mechanism,establish and improve the liquidity risk monitoring system,improve the comprehensive quality of employees and ability,and establish a scientific and reasonable business operation mode,It aims to improve the liquidity risk management level of H rural banks.