The Research On The Development Of YZ Rural Commercial Bank Under The Condition Of Deposit Insurance System

The risk is the operated object of financial institutions, its business is built on the trust of financial institutions depositor. The effects of the 2008 financial crisis had changed the world financial system, and the establishment of the deposit insurance system is again aroused extensive discussion. At present, the government plays the leading role in the regulation of financial institutions, so the financial risk is burned by the government. It is invisible to establish the implicit deposit insurance system. In the face of continuous reform of the financial market, and with the accelerating process of interest rate market relation, government regulation does not seem conducive to the effective development of China’s financial industry.The establishment of the deposit insurance system give the deposit more confidence in the market, and at the same time, it accelerates the efficiency of the using the banks asset, but it allows banks to engage in high risk investment projects in order to pursue more profits, and it leads to more moral hazard behavior. The china Rural Commercial Bank compared to state-owned commercial banks, their business assets, financial basic service and financial risk management ability has obvious gap. Deposit insurance will increase the bank’s operating costs in a certain extent, intensify market competition. So rural commercial bank should improve their competitive strength in the facing of established deposit insurance, and strengthen their awareness of risk prevention, the establishment of effective environmental system to ensure effective play of deposit insurance.Firstly,this paper summarized the status of study of the deposit insurance system at home and abroad, with the theory of financial fragility, financial assets risk contagion theory, D-D model and deposit insurance theory as a foundation, it puts forward the necessity of establishing the deposit insurance in china. Secondly, we introduces the YZ rural commercial banks deposits and the current business situation, then we put forward to build the future of the deposit insurance system influence on its existence, and summarize the current YZ rural commercial banks facing deposit insurance system must face the problem. Finally, combining the internal and external environmental governance of YZ rural commercial bank, we put forward the deposit insurance system need to optimize the conditions, including the improvement of the quality of information disclosure, adopting the different rate, constructing market exit mechanism, and we come up with the corresponding security measures to effectively play for deposit insurance and rural commercial bank stability operation.