The liquidity of commercial banks refers to the ability of commercial banks to meet the cash withdrawal, payment of maturity liabilities and normal loan needs of borrowers. The cash provided by commercial banks meets the requirements of the customer to withdraw deposits and to pay the principal and interest of the debts due. This portion of cash is referred to as "basic liquidity", which together with the cash provided for loan requirements is referred to as "sufficient liquidity". Liquidity management means that commercial banks need to maintain sufficient high-quality liquid assets in their operations to meet the needs of depositors to withdraw cash, pay maturing debts and borrowers' normal loans
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