China's Financial Institutions To Deposit The Difference Between The Causes Of Empirical Research

With the rapid development of Chinese economy, Chinese financial institutions' deposit variance has also undergone a great change. Financial institutions deposit variance, both in a single financial structure and the overall financial structure, reflects the efficient use of funds and transfers funds into other channels. So it not only has microeconomic effects, but also the macroeconomic effects. After the brief elaboration of the economic effect of the deposit variance, we will mainly analysis the causes of it.The thesis will study the causes of the deposit variance of Chinese financial institutions. On the one hand, it displays the reality of the deposit variance development, combining Chinese specific national conditions; and points out the effects on Chinese economy and finance in brief. It mainly analyses the causes of deposit variance in theoretical method; on the other hand, it analyses the causes of deposit variance, which selects empirical analysis method by choosing 11 banks listed.The main body is divided into the following five parts:Firstly, it introduces the deposit variance's development of financial institutions since 1995. It outlines the content of the deposit variance and the state of development, pointing out the features as followed: the growing amount of deposit variance, the increasing of deposit variance rate, the declining the deposit and lending ratio and the top position of the national joint-stock commercial banks.Secondly, points out both of the positive and negative effectives of the deposit variance. It mainly discusses in the following aspects: the economic and financial macro-regulation and control, financial institutions'business development, the operational efficiency of funds in the money market, financial institutions' risks, regional economy and the negative effect on the capital market.Thirdly, the thesis discusses the causes of the deposit variance from the theoretical point of view. Such as the increasing of economic output, the occupying of the excess reserves and the statutory reserve, the increasing of the proportion of holding foreign exchange, the diversifying assets under increasing trend of non-credit assets (such as portfolio investment) and the transformation of smaller demand for cash and so on .Fourthly, it points out the main reason for the expanding deposit variance by principal component analysis method. After computing, we can get two main factors and the corresponding variable factors of each contained.Fifthly, it gives us the final conclusions on the basis of the above analysis. The increasing of balance of deposits is the direct reason; the incremental expansion of the ratio of investment securities resulting from diversification of the pattern is the second one; the declining of the rate of non-performing loans of financial institutions is the underlying reasons of the deposit variance existence.