Network Relationship between Commercial Bank Liquidity Indicators and Various Indicators—Based on Bayesian Network

Abstract

Draining liquidity is one of the main reasons for the financial crisis. Therefore, exploring the link between various indicators of banks and bank liquidity has great significance for studying bank liquidity risk. The article applies principal component to analysis the main components are extracted from the perspectives of assets, loans, deposits, borrowings and reserves. Then the Bayesian network is used to construct a network of links between liquidity and indicators based on this.