CBRC publishes liquidity risk management guidelines for commercial banks

At least one regular stress test per season Xinhua news agency 29th China Banking Regulatory Commission 29th issued the "Commercial Bank liquidity risk Management Guideline", in order to continuously improve the commercial bank liquidity risk management level, to guide commercial banks to fully pay attention to and strive to maintain liquidity adequacy, to ensure the safe and sound operation of our banking sector. Liquidity risk refers to the risk that a commercial bank may not be able to obtain sufficient funds in time or obtain sufficient funds in time to cope with the growth of the assets or to pay the maturing debts.　　If the liquidity risk cannot be effectively controlled, the solvency of Commercial bank will be harmed. The guidelines require that the frequency of stress testing by commercial banks be commensurate with their size, risk level and market impact, but that regular stress tests should be conducted at least quarterly. Temporary and special stress tests should be carried out for specific pressure scenarios in the event of market volatility or the requirements of the CBRC.