Study On The Pricing Of Deposit Insurance

As a creative and advanced financial system, deposit insurance is a double-edged sword, namely that when implemented properly, DIS will help make the finance system stable, otherwise the institutional risk may limit the function of DIS and even destroy the financial stability. Deposit insurance system has been adopted for more than seventy years .It has both advantages and disadvantages. A poorly designed deposit insurance system encourages moral hazard and adverse selection. All these pitfalls originate from absence of fair insurance premium.The writer decides to take Risk-based pricing as the researching target, through comparing the overseas experience, brings of the best method of risk-based pricing. The paper adopts several researching methods, including comparing, analogy, demonstration and citation, etc. Firstly, the author reviews the concept of Deposit insurance, and expatiate the actuality of other countries pricing development. Secondly, the author takes china as an example, investigates our country how to develop the model of pricing and gives a simple introduction to some risks which the commercial bank will face to in the management. The anticipated loss fixed price model and the time power fixed price model were presently quite mature. This article has carried on some narrations to it. Based on the reality, the writer offers the anticipated loss fixed price model. In the end, the author introduces things about the model of pricing and gives suggestions.