Empirical Analysis of Liquidity Risk of Chinese Listed Commercial Banks

Abstract

Liquidity risk has a huge influence on commercial banks. Many scholars have developed and derived different models from different perspectives to measure and prevent liquidity risk of commercial banks. This article selected thirty-seven commercial banks as examples, using their financial data in 2021, and use twelve variables to construct the liquidity risk evaluation index. These selected banks were divided according to their different business natures which included state-owned banks, joint-equity banks, city commercial banks and rural commercial banks. This article uses factor analysis to calculate the liquidity scores, ranks the result and from several perspectives explains the result. Results of factor analysis shows that state owned banks perform worse than non-state-owned banks, but state-owned banks have higher scores on risk resilience, profit and liquidity factors. This article shows different result compared with other scholars’ study, may because of the different macro environments, insufficient data or an imprecise empirical process. This article considers that the special characteristics of years after COVID- 19 and different flexibility of state-owned banks and non-state-owned ones contribute to the result. In the end, this article suggested three aspects, from state owned banks, non-state-owned banks and regulation department to improve or maintain the liquidity situation.