Research on Liquidity Risk Management of Commercial banks under the impact of Fed rate hike

Author:

Duan Xiaolong

Abstract

Liquidity risk refers to the risk of insolvency, credit decline, market value decline and other consequences that commercial banks cannot obtain enough working capital when paying debts or maintaining business operations. In the information society, liquidity risk has become a huge obstacle to the development of commercial banks and even to their survival. And in the most aggressive Fed rate hike cycle since March 2022, liquidity risk management should be a top concern for regulators and commercial banks. This paper studies the course of interest rate hike of the Federal Reserve, its impact on commercial banks, the current situation and difficulties of liquidity risk management of American commercial banks, and puts forward countermeasures and suggestions accordingly: commercial banks should strengthen the liquidity risk management ability, adjust and optimize the deposit and loan structure, strengthen the liquidity risk management awareness of managers, and so on.

Publisher

EDP Sciences

Subject

General Medicine

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