Pricing Of Deposit Insurance With Stochastic Amount Of Deposit

Deposit Insurance originated in the United States. It played a positive role in preventing the risk of Bank Run, protecting the benefits of depositors, maintaining the stability of financial orders and improving the level of financial supervision. The core problem of Deposit Insurance is pricing the premium. And domestic and foreign scholars are most concerned about how to pricing the premium more reasonable to reduce the adverse effects of"Adverse Selection"and"Moral Hazard".We discuss the pricing of Deposit Insurance with stochastic amount of deposit at the base of the results we have known. Deposit Insurance(DI) just like the DI Institute sells the Bank a put option. The DI Institute have an obligation to pay back the depositors'loss arising from the shrink of Bank assets. And, in this thesis, we try to give a model with stochastic amount of deposit which is different from known models.