The so-called liquidity demand refers to the bank's ability to meet customer withdrawals and deposits at any time and meet necessary loan needs.

From the perspective of ensuring this payment ability, liquidity should include two meanings:

Refers to the liquidity of assets; refers to the liquidity of liabilities. The liquidity of assets refers to the ability of commercial banks to quickly realize their assets without loss; the liquidity of liabilities refers to the ability of commercial banks to obtain the funds they need at any time at a lower cost.

From a stock perspective, liquidity is the liquidity of assets held. From a flow perspective, liquidity is the debt capacity to obtain funds.

In summary, the so-called liquidity needs of commercial banks refer to the ability of bank assets to quickly realize cash losses, or to use cash assets to ensure necessary payment capabilities.