In recent years, with the deepening of the reform of the rural financial system, the pace of rural credit cooperative banking reform has been accelerating, and various deep-seated problems have gradually been exposed. This article intends to start from the theoretical analysis of liquidity risk, examine the liquidity risk status of rural credit cooperatives, and put forward some ideas on how to deal with liquidity risk. Liquidity risk analysis: Liquidity is reflected in two aspects. One is the liquidity of assets, which mainly refers to the ability of Rural Credit Cooperatives to quickly realize their assets without causing losses; the second is the liquidity of liabilities, which refers to the ability of Rural Credit Cooperatives to realize their assets quickly without causing losses. The ability of credit unions to obtain the funds they need at a lower cost. Once the liquidity of rural credit cooperatives becomes uncertain, liquidity risks will arise. Recommended reading: Banking Weekly:

The payment industry may be facing a cold winter due to lowering of credit card rates. The eight major news stories of the banking industry in 2011. New credit in 2012 amounted to RMB 8 trillion. The expected income of the industry’s most knowledgeable financial products exceeded RMB 5 The bank card swiping fee rate is being considered to be lowered. The marketization of interest rates may reduce the bank's income by half. A retired aunt was defrauded of 470,000 in a credit card entrusted by Hexun.com. The credit card channel is officially launched. The causes of liquidity risks are very complex, and some are endogenous to the rural credit cooperative system itself. , some come from the transformation of other risks, and some come from risk contagion from other financial institutions. Judging from the current situation in our country, there are mainly the following reasons: First, the maturity of the financial market. Mature financial markets include deposit markets, loan markets, bill discount markets, securities markets, etc., which are directly related to the liquidity of assets and the ability to raise active liabilities during the operation of rural credit cooperatives, as well as the controllability of liquidity risks. degree. The second is the impact of monetary policy. In the case of a reduction in the total amount of social currency and credit, if rural credit cooperatives are unable to raise sufficient funds to meet internal and external capital needs, liquidity risks may arise. The third is the maturity mismatch factor in the asset and liability business of rural credit cooperatives. For rural credit cooperatives, the liability business they operate has relatively strong liquidity, while the asset business has a certain maturity and weak liquidity. This maturity mismatch structure will cause a maturity gap, which may lead to liquidity risk. Current situation of liquidity risk Rural credit cooperatives have a weak awareness of preventing liquidity risks. Rural credit cooperatives have long relied on the country's reputation and have a weak sense of risk. Especially because they have long been responsible for the policy tasks of credit support for agriculture, they have formed a situation of focusing on capital investment and neglecting credit management. They have weak ability to resist market risks and lack risk management awareness. The industry is poorly regulated. The central bank and banking regulatory authorities mainly focus on compliance audits and lack clear judgments on the extent and underlying factors of liquidity risks. This is mainly reflected in the fact that the statistical system and statements of rural credit cooperatives are mainly based on the concept of time point or balance, while the basis of the central bank's liquidity supervision must be the concept of period or flow. The information asymmetry between the regulator and the regulated makes It is difficult for the central bank to make reasonable judgments on the risk control situation of rural credit cooperatives. There are too many risks. A single asset business limits the liquidity of assets. At present, the main sources of funds for rural credit cooperatives are liabilities and owners' equity. The proportion of loan assets to total assets is more than 70%, and financial bonds that can be liquidated at any time as the second reserve are relatively insufficient. Rural credit cooperatives mainly rely on the central bank to maintain a certain proportion of deposit reserves to meet liquidity needs. Due to the low interest rates on statutory deposit reserves, rural credit cooperatives have less reserve deposits in excess of statutory reserves based on their own interests, and their ability to cope with liquidity risks is relatively limited. Liquidity risk response Raise awareness of liquidity risk management. Since liquidity risk has a direct impact on the payment ability and business continuity of rural credit cooperatives, it is the concentration and final manifestation of other risks. Therefore, rural credit cooperatives should strive to improve liquidity risk management and the ability to respond to the impact of the financial crisis, strengthen risk Awareness, firmly establish the idea of ??risk first, and properly handle the relationship between safety, liquidity and profitability. It is recommended that rural credit cooperatives refer to the relevant practices of the Basel Committee on Banking Supervision and the existing regulatory practical experience of various countries, and proactively take measures to prevent and control liquidity risks. Establish a liquidity risk management system.

Rural credit cooperatives must establish a system that can measure, monitor and control liquidity risks, have a unified liquidity risk management policy, set up a dedicated liquidity management department to strengthen the construction of the risk management system, and implement effective collection and processing of relevant data. Real-time monitoring of capital flows and changes in flows, establishment of systems such as liquidity risk stress testing, early warning and emergency plans, clear internal liquidity risk management responsibilities, including the division of labor among the three committees and one layer, risk management departments, and the establishment of a complete liquidity Sexual risk management system. Strengthen liquidity risk management. To strengthen liquidity risk management, rural credit cooperatives must focus on enhancing the liquidity of assets and the stability of financing sources, follow the principle of diversification, formulate specific and clear policies for diversification of assets and liabilities, and improve their ability to respond to market fluctuations. It is necessary to expand the operable space for liquidity management of rural credit cooperatives through the development of various financing methods such as the bill market and the interbank lending market. In addition, rural credit cooperatives should also enhance the liquidity of liabilities and the ability to obtain external funds through active liabilities. At the same time, they should maintain close contact with the central bank, report liquidity status in a timely manner, and strive for financial support. Implement risk warning and stress testing. Rural credit cooperatives must first predict and analyze the liquidity of assets and liabilities, and on this basis establish an early warning system for liquidity risks, standardize all aspects of liquidity risk management such as identification, measurement, monitoring and control, and determine risk warning conditions; establish Regular liquidity analysis system, including liquidity demand analysis, liquidity source analysis and liquidity reserve design. Actively introduce a stress testing system and set stress scenarios based on your own circumstances. The results of the stress test should be used in the formulation of liquidity contingency plans. Disclaimer: This article only represents the author's own views and has nothing to do with Hexun.com. Hexun website remains neutral with respect to the statements and opinions in the article, and does not provide any express or implied guarantee for the accuracy, reliability or completeness of the content contained. Readers are advised to use it for reference only and assume full responsibility at their own risk.