The Establishiment Of The Explicit Deposit Insurance System And Empirical Research On The Pricing Of Deposit Insurance In China

Financial industry is crucial to a country's economic development, while the bank is the heart of finance and plays an important role of financial intermediary. The healthy development of the banking industry is vital to the sustainable development of the national economy, so to maintain the stability of the banking sector is essential. Since the 1980s, the banking sector has been expanding at a high speed with the economic development, the wave of globalization of finance, innovation of financial products and business had brought great changes to the financial industry, but also brought the frequent financial crises. The loss caused by the financial crisis was enormous, now many countries in the world have established deposit insurance system, in order to maintain the stability of the financial system and guard against the financial crisis. China has not established the deposit insurance system as yet, it mainly because of the special national conditions of China, and China has not prepared fully for the establishment of deposit insurance system. This paper is mainly devoted to make an analysis of the establishment of the explicit deposit insurance system in China, makes some feasible suggestions, and makes an?empirical research of the pricing of the deposit insurance.Chapter 1 is introductory. It mainly introduces the background of the research, the domestic and international literature review, the train of thought of the article, and the innovation points.Chapter 2 mainly analyzes the necessity of the establishment of a deposit insurance system and the positive and negative effects brought by the establishment of a deposit insurance system.Chapter 3 makes a comparative analysis from various aspects between the two kinds of deposit insurance systems - explicit and implicit deposit insurance system, in order to provide a reference for the establishment of deposit insurance system in China.Chapter 4 mainly analyzes the current qualifications of China to establish an explicit deposit insurance system, and the improvement that is needed. Additionally, the article considers some issues about the participation in deposit insurance of the state-owned commercial banks, and makes several suggestions.Chapter 5 is the empirical part, it mainly estimates the premium rates of the commercial banks in China, the article uses two kinds of pricing methods - option pricing and the expected loss pricing to estimate the premium rates of some commercial banks in China, and makes a comparison of the two methods, analyzes the limitations and the applicability to China of the two methods.The last part makes a conclusion of the article, and points out the inadequacies of the article.The research method of the article mainly concludes analysis and synthesis, comparative studies and empirical analysis. This article analyzes the establishment of the explicit deposit insurance system in China, and obtained the premium rates of some of the commercial banks in China by empirical research.