Influence And Countermeasures Of The Deposit Insurance System For Joint-stock Commercial Banks

In September 1986,the State Council approved the establishment of New China's first joint-stock commercial banks.From then on,our joint-stock commercial banks obtained sustained and rapid development.As an important subject of China's financial market,the development of joint-stock commercial banks has not only made outstanding contributions for the growth of China's total financial but also promoted the efficiency of China's banking industry to achieve a qualitative change.However,joint-stock commercial banks are risky because they have the operating characteristics of high debt and being sensitive to changes in the market as well as they can not obtain full protection of institutions and policies.Therefore,the establishment of deposit insurance system becomes very important.Modern deposit insurance system originated in the 1930s in the United States,after which the deposit insurance system has gradually become an international practice.As early as 1993,China has proposed to establish a deposit insurance fund.After 20 years of deliberation and preparation,"Deposit Insurance" has been amended several times,our deposit insurance system was finally implemented in May 1,2015.We can have more good ideas for our joint-stock commercial banks to respond to deposit insurance system and obtain better development by reference to the prectical experience of other economies and in-depth analysis of the impact of deposit insurance system in China's commercial banks,especially joint-stock commercial banks.Based on the overview of the theoretical basis and the development status of deposit insurance system and taking its development history in the world's developed countries as a starting point,this paper introduces the background and the content evaluation of China's deposit insurance system.After that,combined with the classification and the development status of China's commercial banks,this paper analyzes the universal influence of bank deposit insurance system.Besides,combined with a case,we can further study a bank's cost and profitability,risk management,market competitiveness.Finally we can put forward policy recommendations from lowering operating costs,strengthening risk control,and promoting the transformation and upgrading.