Research on liquidity risk of commercial bank – from the view of comparison of Chinese and American commercial banks

The liquidity risk of commercial banks has become an important driver of the major risks in the modern economic system. This paper synthesizes the off balance sheet items which are often ignored in traditional bank liquidity researches, and uses the method of tracking and comparative analysis in dif...

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Bibliographic Details
Published in:ITM Web of Conferences 2022, Vol.45, p.1074
Main Author: Wang, Mingming
Format: Article
Language:English
Subjects:
Banks
Commercial banks
Risk
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Summary:The liquidity risk of commercial banks has become an important driver of the major risks in the modern economic system. This paper synthesizes the off balance sheet items which are often ignored in traditional bank liquidity researches, and uses the method of tracking and comparative analysis in different window periods to explore the liquidity changes and possible risks of Chinese commercial banks before, during and after the financial crisis. It is found that traditional loan projects, committed loan projects and demand deposits are important drivers of liquidity risk; Although the liquidity level of China’s banks is high, due to the high demand deposit rate, low core capital ratio, rapid loan growth and high non-performing rate, and the lack of risk prevention awareness, liquidity risk is still a major risk that China’s commercial banks need to face.
ISSN:2271-2097
2431-7578
2271-2097
DOI:10.1051/itmconf/20224501074