Analysis On The Operation Effect Of China's Deposit Insurance System

Since the establishment of the deposit insurance system in the United States in the early 1930 s,it has played a very important role in maintaining the stability of the financial system and enhancing public confidence in the financial system.However,the deposit insurance system is a double-edged sword.While the system brings stability,it has also led to an increase in bank risks and operational instability.In recent years,China's financial system has been continuously developed and reformed,and the financial system has been gradually improved.Especially after the commercial banks have undergone joint-stock reform,their asset quality has improved significantly,and their profitability has improved significantly.On November 30,2014,China issued the Regulations on Deposit Insurance(Draft for Soliciting Opinions).Since the date of publication of the opinions on the regulations on deposit insurance,deposit-taking financial institutions have made preparations for the implementation of the contents of the Regulations.The "Regulations" came into effect on May 1,2015.This study consults the research literature of the deposit insurance system to understand the opinions of experts and scholars at home and abroad on the deposit insurance system,and the impact of the implementation of the deposit insurance system on banking and financial industries in various countries.By analyzing the analysis of the bank's operating performance,scale indicators,and interest-bearing liabilities,the paper further points out the positive,negative and indirect impacts on the operation of commercial banks after the implementation of the deposit insurance system.As far as the current situation is concerned,compared with the deposit insurance systems of other countries,the deposit insurance system in China covers a wider range of financial institutions and deposit funds,and gives greater rights to deposit insurance institutions.Although the implementation of the deposit insurance system has reduced the profitability of the banking and financial industry and increased the instability of bank deposits,it is generally good for the banking and financial industry,especially for regulating the exit mechanism of commercial banks and effectively reducing the financial system Sexual risks and the promotion of small and medium-sized enterprises' credit will bringopportunities,and also establish a basic platform for fair competition among depository financial institutions.This article is mainly divided into six parts.The first part is the introduction.First,it introduces the background of this topic.Second,it summarizes the research of deposit insurance system.The second part is the introduction of the deposit insurance system.Secondly,using the game theory method,it analyzes the effect of the bank's response to the run-in phenomenon when there is a deposit insurance system.Finally,it analyzes moral hazard and adverse selection.The third part is the analysis of the operating effects of the banking industry in China after the implementation of the deposit insurance system.By discussing the operating conditions of banks,we find that the deposit insurance system in China has affected the changes in the deposit market share and the substantial impact on bank runs.The fourth part analyzes the situation of China's implementation of the deposit insurance system by exploring the negative,positive and indirect effects of the deposit insurance system.The fifth part is to address the problems existing in the current system,and to find out a few points for urgent improvement.The sixth part is a suggestion and summary of the full text,and puts forward practical suggestions.Jointly build a favorable environment for China's financial development.