| Liquidity is an important prerequisite for the normal operation of financial institutions,and also an key guarantee for the high-quality operation of the banking system.With the reform of financial marketization for more than 20 years,the marketization mechanism of interbank interest rate in China has been basically completed.On the one hand,it promotes the transformation and innovation of traditional commercial banks’ business,on the other hand,it also brings great challenges to the liquidity of commercial banks.Under the background of interest rate marketization,the inter-bank deposit and loan interest rate is weakened by the supervision of the regulatory authorities,the interest rate can be expected to decline,and the interest rate volatility is significantly increased,which brings huge risks to the commercial banks that highly depend on the deposit and loan interest margin.The reduction of the interest margin between deposit and loan will force commercial banks to adopt more radical business strategy,tap new profit growth points,increase the business risk of commercial banks virtually,and bring huge adjustment to bank liquidity.And in Chinese financial institutions,public-owned institutions and shareholding institutions account for the majority of assets,while urban commercial banks and other small commercial banks account for a relatively small proportion.Under the background of interest rate liberalization,small and medium-sized commercial banks represented by urban commercial behaviors are facing greater shocks.Whether the interest-rate-marketization will increase the liquidity-risk of financial institutions and whether there are differences in the impact on different types of financial institutions constitute the research topic of this paper.Firstly,this paper constructs an index system to evaluate the liquidity risk and interest rate marketization level of commercial banks,and quantitatively analyzes the liquidity risk and interest rate marketization level of commercial banks.Secondly,the impact of interest rate liberalization on the liquidity risk of financial institutions is tested in this paper by constructing a two-way fixed effect model and use public data in recent years,and eliminates the endogenous problem among variables based on the instrumental variables.The results show that the marketization of interest rate will increase the liquidity risk of commercial banks,but it has less impact on large commercial banks and greater impact on small and medium-sized banks represented by urban commercial behavior.After a series of robustness tests,this conclusion is still valid.The results of instrumental variables show that there is still a significant positive correlation between interest rate liberalization and liquidity risk of commercial banks after dealing with the possible endogenous problems between variables.Therefore,in the process of continuously pushing forward the reform of interest rate liberalization,we should pay attention to the liquidity risk of commercial banks,and promote the higher quality and healthier development of commercial banks in the reform.Specifically,in the face of the increasing liquidity crisis of commercial banks,it is necessary for government regulators and commercial banks to adopt a multi-party linkage mechanism to jointly curb the adverse impact of interest rate liberalization on the liquidity of commercial banks.From the macro level,we should further relax the financing channels of commercial banks and speed up the listing of commercial banks;at the same time,we should reasonably reduce the scale of off balance sheet business of commercial banks,and reduce the uncertainty brought by off balance sheet business to the business activities of commercial banks.At the regulatory level,different regulatory strategies should be formulated according to the nature of different banks.At the same time,in terms of external support system,we should further improve the deposit insurance system to maintain the deposit security of ordinary residents.From the micro level,under the background of interest rate liberalization,commercial banks should further improve the awareness of liquidity risk management,establish a diversified liability structure,and improve the liquidity risk management and control mechanism of daily business activities. |
