Research On China’s Commercial Bank Market Withdrawal Mechanism Under The Framework Of Deposit Insurance System

With the continuous development of market economy, China’s banking market access lowers the standards and requirements to a great extent, a large number of small and medium-sized banks enter the market, the banking market competition is intensifying,Due to the capacity of any market has a certain limitation, banking market is no exception, when part of commercial banks have poor management and cannot repay the dept, exiting the market is the inevitable result. The market exit process of commercial bank involves the setting of exit criteria, the perfection of financial risk early warning mechanism, the choice of the ways of market exit, the construction of relevant Saws and regulations, as well as the establishment and using of Deposit Insurance System, etc.At present,as one of three lines of the financial safety defence net.Deposit Insurance System has been preliminary implementing in China,its effective enforcement is a very important link to build a perfect Commercial Bank Market Withdrawal Mechanism,Deposit insurance agency plays an important role in the process of the commercial bank market exit.So the article analyses how to establish and improve the Commercial Bank Market Withdrawal Mechanism under the framework of Deposit Insurance System,and then to stabilize the financial order.This paper firstly makes a brief overview of the evolution of Deposit Insurance System; and the theoretical analysis has been done for the Commercial Bank Market Withdrawal Mechanism, mainly from the possibility of commercial banks to leave market and the necessity of building Commercial Bank Market Withdrawal Mechanism to illustrate.Then analyses the relationship between Deposit Insurance System and the Commercial Bank Market Withdrawal Mechanism.The one is Deposit Insurance System is beneficial to the construction of the Commercial Bank Market Withdrawal Mechanism, the second is the implementation of Deposit Insurance System has a positive impact to commercial banks running,and also would bring the negative effects, which can lead to commercial banks to exit the market.And Next comparatively analyses Commercial Bank Market Withdrawal Mechanism of foreign representative countries.sums up the successful experience, and illustrates the status and existing problems of the Chinese Commercial Bank Market Withdrawal Mechanism.Finally,through the above analysis, puts forward construction suggestion of China’s commercial bank market withdrawal mechanism under the framework of deposit insurance system.