Research On China's Deposit Insurance System For Small And Medium Sized Banks In Rural Areas

The 14 th Five-Year Plan clearly calls for balancing development and security and building a safer China at a higher level.Financial security is an important part of national security.As one of the three pillars of the financial safety net,the deposit insurance system plays an important role in protecting the interests of depositors,maintaining the stability of the banking system,and preventing and resolving risks in the financial system.The promulgation and implementation of the Deposit Insurance Regulations in2015 in China is an important demarcation point in the development of China's deposit insurance system.The People's Bank of China announced the takeover of Baoshang Bank in May 2019 on the same day that the deposit insurance fund management company was set up separately.Since its establishment five years ago,the deposit insurance system has further stabilized the deposit pattern of large,medium and small banks and promoted the normal operation order of banking financial institutions.The deposit insurance has played a positive role,especially in the handling of the case of Baoshang Bank.As an important part of China's banking system,small and medium-sized banks in rural areas play an irreplaceable role in serving the real economy and promoting the rural revitalization strategy due to their large number,wide geographical dispersion and large individual differences.What impact will the establishment of deposit insurance system have on the risk taking of small and medium-sized rural banks? What are the factors that affect the deposit insurance rate of small and medium-sized rural banks? And how to decide the price of deposit insurance? It is an important issue that should be studied in order to promote the return of finance to its source in the process of further promoting the implementation of rural revitalization strategy after winning the war against poverty.Based on a systematic review of relevant researches and practices of deposit insurance system at home and abroad,this paper takes deposit insurance pricing,the core issue of deposit insurance system,as the entry point,from deposit insurance interval pricing to the factors affecting the deposit insurance rate of small and medium-sized rural banks.On the basis of clarifying the importance of the factors affecting the premium rate,this paper analyzes the influence of the establishment of deposit insurance system on the risk taking of rural small and medium-sized banks.To sum up,the main research contents and results of this paper are as follows:First of all,this paper systematically combs the theories of deposit insurance system from six aspects: bank run,internal vulnerability of banks,Nash equilibrium,contagiousness of bank crisis,moral hazard and adverse selection,and then summarizes the target principles and operational framework of deposit insurance system.On the basis of theoretical analysis,the practical experience of deposit insurance system in different countries is compared,and the main research object of this paper is small and medium-sized rural banks.This paper compares the differences of deposit insurance practices of small and medium-sized banks in major countries from three perspectives: differential rates,risk monitoring and risk disposal.Secondly,the research perspective focuses on the development process and status quo of China's deposit insurance system.This paper systematically summarizes the development course of deposit insurance system in China,and analyzes the current situation of deposit insurance system in China from the perspectives of deposit insurance coverage,payment limit,deposit insurance fund and management organization,deposit insurance rate design,risk disposal and early correction of deposit insurance system.Finally,the paper studies the positive role of the deposit insurance system in China,and briefly analyzes the influence of the establishment of the deposit insurance system on the rural small and medium-sized banks in China.Thirdly,the paper studies the pricing of deposit insurance which is the core problem of deposit insurance system.After the introduction of triangular intuitionistic fuzzy number,the interval regulation thought in China's economic policy is applied to the deposit insurance pricing model.Then the analytical solution of the interval price of the deposit insurance rate is obtained through mathematical derivation and proof.Then the paper takes the data of small and medium-sized rural banks as an example and carries out comparative static analysis.The results show that with the increase of the degree of ambiguity,the upper and lower bounds of the insurance premium per unit deposit show inconsistent changes.The upper bound of the deposit insurance rate increases with the increase of the degree of ambiguity,while the lower bound of the deposit insurance rate decreases with the increase of the degree of ambiguity,that is,the rate range becomes larger.When the asset savings ratio is small,the upper and lower bounds of the premium rate range are very close to each other and decrease with the increase of the asset savings ratio,but the decline is larger.When the asset savings is relatively large,the upper bound of the premium rate range increases with the increase of the asset savings ratio,while the lower bound is negatively correlated with the asset savings ratio.Based on the pricing of deposit insurance rate,the paper further studies the factors that affect the deposit insurance rate of small and medium-sized rural banks.Different from regression analysis,this paper uses K-means clustering method to get the risk level and premium rate of small and medium-sized rural banks,and then determines the important factors affecting the deposit insurance rate according to the sample risk level and premium rate.It is found that the capital adequacy ratio is the most important single index affecting the deposit insurance rate.The combination of capital adequacy ratio,non-performing loan ratio,provision coverage ratio and cost-income ratio is the combination index that affects the deposit insurance rate.Finally,based on the basic fact that China established the deposit insurance system in 2015,the paper studies the impact of the deposit insurance system on the risk taking of small and medium-sized rural banks.The results show that the implementation of deposit insurance system significantly reduces the level of risk taking of banks.After replacing the explained variables and the indentation,the results were still robust.Further study also found that the reform of rural commercial banks reduced the level of risk taking;The implementation of deposit insurance system has no significant effect on the risk-taking level of larger banks,but significantly reduces the risk of smaller banks.The paper also examines the impact of the external financial environment of small and medium-sized banks in rural areas.The research of this paper has certain theoretical significance and practical reference for promoting the further improvement of China's deposit insurance system,and then promoting the construction of China's financial safety net.