The liquidity risk management system includes effective monitoring by the board of directors and senior management; Perfect liquidity risk management strategies, policies and procedures; Perfect liquidity risk identification, measurement, monitoring and control procedures; Perfect internal control and effective supervision mechanism; Improve the effective information management system; Effective crisis management mechanism.

1. Liquidity risk management means that banks should avoid the risk of excessive concentration of various business types and the risk of capital flow gap in a specific period. At the same time, it is necessary to consider the financing sources required for the counterparty to terminate the arrangement or improve the credit arrangement in advance when its financial situation deteriorates.

2. Banks should follow the following principles in liquidity management.

(1) camera selection principle

Commercial banks must choose between liquidity, security and profitability, and strive to improve profitability on the premise of ensuring the normal business activities of banks. According to the business priorities in different periods, we should weigh the weight and make choices. Generally speaking, some powerful big banks have a good loan reputation in the financial market, and it is easy to obtain low-cost funds through active debt. However, the majority of small and medium-sized banks have a gap with big banks in terms of scale, financial strength and credit, so most of them adopt asset contraction and asset conversion to obtain funds.

(2) the principle of lowest cost

Whether it is to raise funds through active liabilities or to meet the demand through the conversion of self-owned assets, we must bear in mind that the guarantee cost is the lowest. Cost minimization is one of the bases for choosing the best scheme. On this basis, banks can predict the future liquidity demand and the trend of market capital supply and demand, and make a variety of financing schemes to choose from.

3. Liquidity management not only requires commercial banks to hold sufficient liquid assets such as cash, but also requires commercial banks to have the ability to quickly raise funds from other channels to ensure timely performance of payment obligations and loan commitments. Liquidity management is the basic means for banks to expand their business and enhance their strength. Adequate liquidity is the guarantee to maintain and improve the reputation of banks. Liquidity management is an important means to avoid and reduce the operational risk of banks.