Research On Chinese Construction Of Explicit Deposit Insurance System

With the innovation capability of global banking industry enhancing, financial derivatives are coming one after another, the factors threatening banking stability are becoming more complex, bank failures incidents occur occasionally. When a bank gets into insolvency crisis, depositors will lose confidence in the whole banking system, and sometimes that will result in the financial panic of the entire society. Therefore, many countries have established explicit deposit insurance system to better safeguard the banking sector's efficient operate. Owing to the historical and institutional reasons, Chinese commercial banks cumulate many risks. With the continuous reform progress of banking sector, the banking risks have been released to a certain extent. To improve the problem of market exit mechanism for financial institutions, to alleviate the plight of individual banks in the entire banking system, to maintenance depositors interests, to enhance public confidence in the bank's ability of payment and to maintain financial market's security and stability, establishing explicit deposit insurance system conditions with Chinese character has become an urgent task for the financial sector.Through a series of theory to explain the operation mechanism of the deposit insurance system and its operating environment. Then combining empirical analysis to demonstrate the risks and development prospects of Chinese banking system and analyze the need of establishing explicit deposit insurance system and its problems. And then integrated with the international relevant experience, from the reality of Chinese banking sector, research and design the framework of the deposit insurance system in China.In the theoretical basis part of deposit insurance system, starting with the theory of banking instability, the theory of banking runs into crises. And the theory of domino effect, analyze the theoretical basis of establishing deposit insurance system. Then, from the composition of the deposit insurance system, the classification and the positive and negative effects of deposit insurance system, three aspects of the content of the deposit insurance system to introduce the deposit insurance system.In international comparison of explicit deposit insurance system, the author select government leading deposit insurance system of the U.S.A, to private leading deposit insurance system of Germany and mixed leading deposit insurance system of Japan in this study. Introduce the operation of the three deposit insurance system, and sum up the advantages and disadvantages of the designing process of their deposit insurance system. Finally, on account of International Monetary Fund the study of deposit insurance system, based on the sum of the deposit insurance system design process, provide guidance of constructing a of explicit deposit insurance system.In empirical analysis of implicit deposit insurance system, with four state-owned large commercial banks and nine small and medium sized national joint-stock commercial banks for the study sample, analyze the business risk and the entire banking system prospects for development of Chinese banking industry in implicit deposit insurance system. And on this basis, arguing the current drawbacks of implicit deposit insurance system, to expound the need of establishing explicit deposit insurance system and point out the attentions in the establishing processes.The last part of the paper draw on the deposit insurance system experience of the advanced countries in the world model, from the external environment and internal settings this two aspects of explicit deposit put forward relevant policy recommendation of constructing Chinese explicit deposit insurance.