Final Dissertation After the financial crisis occurred in 2017, China experienced a rapid recovery period. However, the extraordinary development has brought various risks. Liquidity risk 5859Words
Final Dissertation After the financial crisis occurred in 2017, China experienced a rapid recovery period. However, the extraordinary development has brought various risks. Liquidity risk 5859Words
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Final Dissertation 5859Words
Abstract
After the financial crisis occurred in 2017, China experienced a rapid recovery period. However, the extraordinary development has brought various risks. Liquidity risk is possibly the most severe risk that Chinese banks face. In this paper, the author will assess the liquidity risk among Chinese banks during 2018-2020 with two ratios named Loan-to-Deposit ratio and Liquidity Coverage ratio respectively. Both of them can simply measure the liquidity level of banks through analyzing the results. Furthermore, the interbank offered ratio in China named Shibor will also be considered to emphasize the liquidity crisis in 2018.