CBRC issued a dispatch to standardize the liquidity risk management of commercial banks

The CBRC issued the "Commercial Bank liquidity risk Management Guideline" to continuously improve the liquidity risk management level of commercial banks, guide commercial banks to fully pay attention to and strive to maintain liquidity adequacy, to ensure the safe and sound operation of China's banking sector, recently, the CBRC issued "commercial banks Liquidity Risk Management Guidelines" (hereinafter referred to as　　The guideline is divided into five chapters and 86 articles, which are defined and regulated from the purpose of liquidity risk management, the establishment of management system, the methods and techniques of management, and supervision and management. The first chapter is about the purpose, legal basis and scope of application of the guideline, outlines the prudential requirements of liquidity risk management of commercial banks and the supervision and inspection duties of the supervisory authorities. Chapter II Liquidity Risk Management system, it regulates the roles and responsibilities of the Bank board, senior management and related departments in the management of liquidity risk, requires the commercial banks to formulate clear liquidity risk management strategies, policies and procedures, and also clear the specific requirements of internal control, management information system construction and external information disclosure. The third chapter introduces the methods and techniques of liquidity management, and makes clear the principles and practices of liquidity management of assets and liabilities of commercial banks and cash flow management, and regulates liquidity risk pressure test and contingency plan. The fourth chapter is the supervision and management of liquidity risk, which is to clarify the principles, supervision procedure, supervision measures and supervision cooperation.　　The fifth chapter, which refers to the institutional scope, interpretation mechanism, implementation time and grace period of the implementation of the guideline, is specified in the annex. The head of the CBRC said since its inception, the CBRC has always maintained the liquidity adequacy of commercial banks as an important aspect of day-to-day supervision, by setting 75% of the deposit and loan ratio high-limit, carrying out stress testing, guiding the optimization of credit structure, and so on to ensure adequate liquidity, in the fight against the global financial crisis played an important role.　　At present, China's commercial banks have a higher overall liquidity level, the National interbank lending market liquidity is abundant, to the end of September 2009, the National Commercial bank liquidity ratio averaged 41.7%, much higher than the 25% minimum regulatory requirements. The outbreak of the international financial crisis has highlighted the importance and necessity of strengthening liquidity risk management, and the enactment of the guideline has not only drawn on the international advanced experience, but also taken into account the current situation of China's banking development, and is helpful to further improve the risk management system of our commercial banks, and Healthy development will be a new impetus.