Questions and answers by CBRC on "Guidelines on liquidity risk management of commercial banks"

The CBRC issued the guidelines on liquidity risk management of commercial banks recently, the CBRC issued the "Commercial Bank Liquidity Risk Management Guidelines" (hereinafter referred to as the "Guidelines"), the CBRC responsible for the relevant questions answered the reporter questions.　　Q: What is liquidity risk? A: Here we have to distinguish between the two concepts, that is liquidity risk and liquidity risk, mobility risk refers to the commercial banks, although the solvency, but not timely access to adequate funds or reasonable cost of timely access to adequate funds to cope with the growth of assets or to pay the risk of maturing debt.　　If the liquidity risk cannot be effectively controlled, the solvency of Commercial bank will be harmed. Under normal circumstances, liquidity risk and market risk, credit risk, operational risk, legal risk, reputation risk and other risks have a strong correlation, so we can not look at the management of liquidity risk in isolation, but as a commercial bank risk management system is an important part of the　　The board and senior management of commercial banks should attach great importance to liquidity risk management, and should always pay attention to the interaction, transfer and transformation between them and other risks in the daily management, and embody in the internal organization structure and coordination system design.　　Q: Why publish the guidelines? A: Liquidity risk is one of the main risks faced by commercial banks in daily operation, which has a direct impact on the ability of commercial banks to pay and the continuity of business. The second pillar of the new capital Accord, the first of which requires banks to have the procedures and capabilities to assess all substantial risks including liquidity risks, and the Basel Committee on Banking Supervision's core principles of effective banking supervision, also suggests that regulatory authorities should develop liquidity risk management guidelines for banks. The financial crisis has shown that market liquidity can be reversed and maintained for a long time, highlighting the importance of liquidity risk management for financial market operation and Commercial Bank management. The formulation and release of the guideline is of great significance for steadily advancing the implementation of the new capital accord, enhancing the liquidity risk management ability of our commercial banks and preventing the financial crisis. Liquidity risk management involves many branches of the bank and the technology of risk management is relatively complex. By drawing on the international advanced experience and combining with China's reality, the guideline clearly divides the internal liquidity risk management responsibilities of commercial banks and regulates the identification, measurement, monitoring and control of liquidity risk management of commercial banks, which can guide and urge commercial banks to strengthen the flow risk management.　　This guideline and the CBRC have promulgated the "Commercial Bank Market risk management guidelines" and other risk management guidelines, together constitute a commercial bank risk management guidance system. Second, to promote the commercial banks to do a good job of the new capital Agreement. The principle of supervision and inspection of the second pillar of the new capital accord requires banks to assess capital adequacy ratios based on liquidity status and market liquidity, and a system capable of measuring, monitoring and controlling liquidity risks must be established. This guide and the implementation of new capitalThe other guidelines of this Agreement together constitute the guideline framework for the three pillars of China's banking industry to implement the new capital Accord, to guide and standardize the liquidity risk management of commercial banks, and to provide a basis for the new Capital Accord Bank to determine the capital adequacy ratio under the second pillar under the liquidity risk management condition. The third is to provide standards for supervision and inspection by regulatory authorities. The evaluation of the effectiveness of the commercial liquidity risk management by the regulatory department is the requirement of the second pillar of the new capital Accord and the core principle of effective supervision, and also the important guarantee for the commercial bank to improve the management level of liquidity risk.　　The liquidity risk management standards set out in the guidelines provide a basis for supervision and inspection by regulators, providing a clear benchmark to help regulators improve the effectiveness and relevance of liquidity risk supervision and inspection.　　Q: What is the scope of application of the guideline? A: As the purpose of introducing the mobile risk management guideline is to improve comprehensively the ability of banking financial institutions to manage liquidity risk, this guideline is not only applicable to the guidance of the implementation of the new capital accord of China's banking industry, but is different from other regulatory guidelines developed specifically for the implementation of the new capital Accord.　　The new capital Accord Bank and other commercial banks that voluntarily implement the new capital Accord also apply to other commercial banks that have not implemented new capital agreements.　　Q: What impact does the guideline have on current liquidity risk regulatory indicators? A: The guideline mainly clarified the principles followed by the liquidity risk management of commercial banks. The management system, the management method and the technology as well as the prudent request in the implementation, has not changed the current liquidity risk regulation index, the Commercial bank still should strictly abide by the current laws and regulations and the Administrative Rules and regulations related to the liquidity risk the supervisory index,　　The CBRC regulates the compliance of various liquidity risk supervision indices of commercial banks according to law. At the same time, the guideline also makes it clear that the regulatory authorities can raise the liquidity supervision index requirements of commercial banks when necessary, and have the right to adjust the calculation method, calculation caliber and calculation frequency of various liquidity risk regulation indexes according to the liquidity condition of commercial banks. The content and frequency of liquidity risk monitoring statements and reports can be determined by commercial banks according to the size of commercial banks and their status and risk status in the payment system and financial market. So that management can take timely measures to avoid further deterioration of liquidity conditions or breakthrough liquidity regulatory indicators.