Research On Differential Pricing Of Deposit Insurance In China's Commercial Banks

With the development of global economy and society, the financial industry is showing a trend of globalization and liberalization. Deposit insurance system, as one of the three main elements of current financial safety net, is gradually established and promoted in many countries and regions. And it is becoming the main trend in the international arena. The main purpose of deposit insurance system is to protect the deposits, to avoid bank crisis under public panic, and to constrain the behavior of banks, so as to prevent bank risk, guarantee the healthy development of banks and maintain financial stability. For our country, with the rapid development of economy, China has achieved success in financial reform, and has made significant progress in interest rate market. And commercial banks are facing a variety of challenges and a wide range of risks. In such a situation, the original deposit protection system of China shows many drawbacks. Therefore, China is committed to building our own deposit insurance system. And the pricing of deposit insurance is the core of deposit insurance system, which is the most important and difficult part as well.This paper firstly introduces the theory of deposit insurance pricing, compares fixed rate pricing and risk based pricing, and analyzes the important role of reasonable pricing in maintaining financial stability and the prevention of moral hazard and adverse selection. Secondly, in order to gain a revelation, this paper compares and analysis the deposit insurance pricing system of other typical countries and regions. Thirdly, this paper studies the main models of deposit insurance pricing. After analyzing, this paper studies on the deposit insurance pricing of listed commercial banks in our country based on RV pricing model, and calculates the corresponding insurance rates. In order to calculate the rates of non-listed banks, according to the results of RV pricing model, this paper builds a regression model based on financial indicators, and tests it with some non-listed commercial banks of China. Finally, based on theoretical analysis and empirical research, this paper makes several recommendations for building the deposit insurance pricing system of China, so as to provide reference for reasonable pricing of China deposit insurance.