Research Of Deposit Insurance Sysytem

Since the beginning of twenty-first Century, China’s financial market has undergone tremendous changes, which the banking sector is particularly evident. From the perspective of external factors analysis:the central bank deposit reserve system, all kinds of caliber change and accelerate the process of market interest rates, further squeezing the profits of the banking sector, prompting profound changes. Analysis from the perspective of internal factors:First, the special nature of the banking industry to determine the industry risk; second, access to private banks, the banking industry’s competition is more intense, significant changes in the industry structure. Considering the impact of the banking sector and external factors, combined effect of these factors increase the risk of bank failures and banking sectors the possibility of threatening the security and stability of the financial markets funds depositors, and even affect the country’s overall economic situation. Internationally, many countries through the establishment of a deposit insurance system to improve financial safety net system in order to resist the banking risk and regulate banks. However, none of our long-standing genuine sense of the deposit insurance system, but the implementation of implicit deposit insurance system. Implicit deposit insurance system not only increases the financial burden on the government, but also to curb the development of financial markets. Therefore, the implementation of the deposit insurance system is imminent.In1993, the establishment of a deposit insurance fund is put forward for the first time in china. After22years of exploration, China has paved the establishment of a deposit insurance system theory and optimization of the relevant system environment. May1,2015, China’s deposit insurance system was officially implemented. At this time, the deposit insurance system combing the history and theory, and learn from international experience, interpretation of the deposit insurance system, has theoretical and practical significance. On the basis of analysis of the deposit insurance system, the paper not only presents positive effects and drawbacks of the implementation of the deposit insurance system might generate, but also for the disadvantages put forward the corresponding recommendations for improvement. In the early implementation of the deposit insurance system, we hope this can be a deposit insurance system to better play to the effectiveness of the financial markets and to promote modest contribution to the real economy.This paper is divided into seven sections.Part Ⅰ:On the one hand, be made in the deposit insurance system for the study of the theme of the background and significance; on the other hand, separately from the Establishment of the deposit insurance system, patterns and institutional environment in three aspects, combing the deposit insurance history related literature.Part Ⅱ:theoretical reference and concept definition. In this paper, the text used to: deposit insurance system theory, institutional change theory, runs the risk of moral hazard phenomenon and the corresponding explanations.Part Ⅲ:International Lessons of the deposit insurance system. From the beginning of the United States to establish a deposit insurance system, combing the development process of the deposit insurance system. Analysis of the US, Japan, Germany three countries typically deposit insurance system mode, and when summed improve our deposit insurance system model should learn content.Part Ⅳ:Analysis of implicit deposit insurance system. On the one hand, from banking, trust and securities issues financial institutions process, reviews the development process of implicit deposit insurance system. On the other hand, based on the sort of limitations implicit deposit insurance system in our country is analyzed and pointed out the limitations of the deposit insurance system invisible far greater positive effects generated thereafter. Therefore, our deposit insurance system has been imperative.Part Ⅴ:Establishing Deposit Insurance System is imperative. Conducted from two aspects of optimization theory foreshadowing and the institutional environment analysis shows the necessity of the implementation of the deposit insurance system, China’s introduction of deposit insurance system is the need for financial market development.Part VI:First, the deposit insurance system in our country has made it clear manner insured, insurance agencies range of insured accounts range, six applications reimbursement for premium rate and the deposit insurance fund sources for further explanation. Then, for unspecified premium rates, the use of Merton model estimates, the calculation results indicate that there is a strong difference between the rates in the country applicability.Part VII:Impact of Implementation of the deposit insurance system. In view of the implementation of the deposit insurance system, the paper not only analyzes its positive effects, but also analyze its shortcomings and propose improvements for malpractice.