Private Banks Public Trust Risk Of Genetic Research

Recently, "Private Bank" has been a focus in the research of China's financial structure reform. There exists a heated controversy on what is a private bank, why should we set up a private bank and how to develop a private bank, and also somebody had had deep study on these areas. However, the topic about the risk of bank runs still without systematical study deserves our investigation and deep research. The main question that will be studied in this paper is the cause of the bank run risk of China's private bank, including the inherent cause and the practical cause. The paper will analyze the basic cause from the angle of the commonness of bank, which includes three factors: the high risk of private bank's management, the asymmetry of information, and the psychogenic mechanism of depositors' herd behavior. The analysis of the practical cause will proceed with the practical condition of private bank in China, it includes: the inferior position of the private bank for the moment, the unsound financial environment, and the practical inducement of private bank run .At the same time, the paper puts forward the relevant measures to keep away the bank run risk after the analysis of the cause.The paper use the game theory, information economics, the theory of financial fragility ,the behavioral finance theory and so on for reference ; systematically analyzes the cause of China private bank's bank run risk ; and bring forward the sound measures on how to keep away the risk. To some degree, it will be useful for our county's private bank reformation.