The Study Of The Risk Of Bank Runs In City Commercial Bank On The Basement Of Asymmetric Information

In the past twenty years, with the relaxation of the financial control and the development of economic globalization, a series of bank crisis and currency crisis have successively happened in the world. And the crisis caused by bank run is endless. What's more, bank run has an immense effect to the city commercial banks which have smaller scale, and historical burden and whose development depends on local economic. It even will lead banks to bankruptcy. In order to providing some advice to these business banks with a small scale, this essay, using the dynamic game model and case to analyze the bank runs, discusses the reason of bank run from the perspective of the theory of information asymmetry. In the end we summarize some general experience to control the bank runs.Firstly, making an on-the-spot investigation of the cases of bank runs which happened at home and abroad, we observe that bank runs are the reason of financial crisis. Then beginning from the analysis of the theory of information asymmetry and herd behavior, we analysis the reason of bank runs, and we know three reasons:one reason is that bank runs happened spontaneously, one reason is that bank runs happened by the influence of the information and another reason is that bank runs are caused by the two reasons before. In the framework of the model, we make the simplest model which has a hypothesis of complete information and get a conclusion of the existence of multiple Nash equilibrium. And then we relax the assumption to make the model close to the reality and to give a more comprehensive analysis of the reason of bank runs. Introducing theories and models is to make preparation for the following case. In the case we describe the financial situation of the bank when bank ran and the surrounding economic environment in detail. In addition, observing how the bank and relevant departments dealt with bank runs, we summarize some normal precautions which are used to resolve the bank run. Finally, from the micro and macro perspective, we get the precautions of preventing bank run and counter measures of the control of the effect of bank run.