Research On Legal System Of Moral Hazard Prevention In Deposit Insurance

In recent years, our country is making effort to promote the establishment and improvement of deposit insurance system. The implementation of the system makes further safeguard the interests of the depositors.It is also helpful to maintain the stability of banking industry and the whole financial market development.Meanwhile the existing incentive and constraint mechanism of each organization closely contact with the system is also change correspondingly.And then the moral hazard problem in deposit insurance system produced.Therefore.how to effectively prevent the happening of the hazard and dealing with the hazard became the research hot spot.With further research of the moral hazard in deposit insurance system,to analysis of the harm and causes of moral hazard,and combine our country reality to establish the reasonable and effective preventive measures will have important value for the stability and sustainable development of the financial system in our country.This paper analyzes the moral hazard problem in deposit insurance system from the following aspects:The first part analyzes the basic theory of moral hazard problem in deposit insurance system.It mainly studies the basic issue of moral hazard,such as connotation,essence,characteristic,form and so on.The second part,the paper analyzes the cause of moral hazard in deposit insurance system.Moral hazard produced by the main reason is based on the nature of self-interest, under the lack of discipline and restraint mechanism, lead to the risk of beggar-thy-neighbour.The third part, the harm of moral hazard in deposit insurance are expounded.Moral hazard in deposit insurance may lead to a series of problems such as sexcessive banks to engage in risky behavior、depositors to bank market constraint weakening、financial regulators prudential regulation and so on.These will impact the stability of financial system, and affects the efficiency of resource allocation, thereby impede economic growth.The fourth part, the deposit insurance moral hazard prevention comparative analysis.The United States and Germany deposit insurance moral hazard prevention mechanism have carried on the detailed analysis and comparison in this part,conclude their advantages of moral hazard prevention mechanism in deposit insurance. The fifth part, to build China’s moral hazard prevention mechanism in deposit insurance.Based on the fourth part,and combined with the actual situation in our country,conclude Chinese characteristics hazard response measures in theory-to establish and optimize the explicit deposit insurance system,reasonably construct China’s moral hazard prevention mechanism in deposit insurance.