Induced Theory And Analysis On Influencing Factor Of Commercial Bank Runs

Commercial bank runs usually occurs when it has a significant negative rumor about the bank, meanwhile the bank can not cope with the withdraw on a large scale , then it probably resulted in cash flow problems. If we can not stop the run on the bank or get some help from other sources, the commercial bank will face bankruptcy and credit insolvency. Worsely, if the runs spread, it could lead to systematic financial crisis.It has internal and external causes on commercial bank runs, and it has two mainstream views on commercial bank runs from domestic and foreign, The opinion that commercial bank runs is spontaneous and random phenomenon, and it has nothing with other variables; Another view that commercial bank runs is related to information asymmetry between bank and depositors or the business cycle, not a spontaneous and random phenomenon.Through analyzing those factors like the cash flows, risk capital and invisible guarantees which belong to the commercial banks, we can know the state and potential problem of those factors on commercial bank runs, more importantly, to know the risk on the commercial bank runs.Large-scale deposits and loanings of commercial bank easily lead to some problems on cash flows and safety, and even withdraws on a large scale. Analyzing large-scale deposits and loanings of major commercial banks in sub-district of china with LSV herding behavior model, we found that there is no apparently massive risk on savings, but have apparently massive risk on loanings in sub-district bank of china.Through the analysis the causes and influencing factors on commercial bank runs, we should be alert to the commercial bank runs through maturity the information disclosure system monitoring the cash flow, improving the assets on banks, reducing the Concentrative Degree of the market and building Deposit Insurance System. To make sure the development of the commercial bank in a stable and healthy way.