Author(s)

Xing Xia

Corresponding Author

Xing Xia

Abstract

The liquidity risk of commercial banks is increasingly valued by the financial community worldwide. This paper uses financial indicators to analyze the current situation of China's small and medium-sized commercial banks' liquidity risk. And this paper finds that the loan-to-deposit ratio, non-performing loan ratio and liquidity ratio of small and medium-sized commercial banks are on the rise. Compared with large commercial banks, the liquidity risk of small and medium commercial banks is more severe. The main causes of liquidity risk of small and medium-sized commercial banks are weaker capital strength, lower asset quality, single asset-liability structure, and limited state guarantees for China's small and medium-sized commercial banks. The liquidity risk of small and medium-sized commercial banks can be reduced by improving the matching of assets and liabilities, optimizing the structure of assets and liabilities, improving the credit quality and adhering to financial innovation.

Keywords

Commercial banks; Liquidity risk; Cause analysis