tailieunhanh - Does China require an explicit deposit insurance system?

This study indicates that there is no explicit evidence supporting the fact that banks in China lack strength and are exposed to the risk of bankruptcy. That is, the financial industry structure in China is healthy and an increased investment and facilities in this industry should be considered. However, the empirical results of the deposit insurance pricing model show that it is necessary to establish a deposit insurance system for the banks in China as all the estimated deposit insurance premiums are significantly positive. It is suggested, therefore, that an explicit deposit insurance system should be introduced in China. Without establishment, the cost that should be borne by the banks will be shifted to the public and thus lower the operation costs of banks. | Journal of Applied Finance Banking vol. 6 no. 2 2016 127-142 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2016 Does China Require an Explicit Deposit Insurance System Fu Shuen Shie1 Abstract This study indicates that there is no explicit evidence supporting the fact that banks in China lack strength and are exposed to the risk of bankruptcy. That is the financial industry structure in China is healthy and an increased investment and facilities in this industry should be considered. However the empirical results of the deposit insurance pricing model show that it is necessary to establish a deposit insurance system for the banks in China as all the estimated deposit insurance premiums are significantly positive. It is suggested therefore that an explicit deposit insurance system should be introduced in China. Without establishment the cost that should be borne by the banks will be shifted to the public and thus lower the operation costs of banks. JEL classification numbers G14 G15 G21 Keywords China deposit insurance system financial distress option pricing model Z-Score 1 Introduction According to information from the International Association of Deposit Insurers IADI 2 up to 30 September 2010 there are 106 countries adopting an explicit deposit insurance system EDIS and 19 countries including China are currently considering establishing an EDIS. An EDIS provides the function of protecting the benefits of depositors with the ultimate goal being to stabilize the financial system. It must be assessed however whether or not the financial system in China is unstable and likely to experience financial distress. Also does China even require an EDIS These questions are investigated in this study. Since the majority of deposit accounts in Chinese banks belong to small depositors if a 1 Department of Finance National Taichung University of Science and Technology No. 129 Sec. 3 Sanmin Road Taichung City 404 Taiwan . Article Info Received January 10 2015.

• Ngân hàng - Tín dụng
• Deposit insurance system
• Financial distress
• Option pricing model
• Explicit deposit insurance system
• China require
• Deposit insurance
• Commercial banks
• Financial sustainability
• Banking system
• Ensuring financial sustainability
• Bio Chemical Parameters
• DNA Integrity
• Protein Profile
• Phosphorylation State
• Seawater Fish Spermatozoa
• Current Issues
• Bioinformatic Analysis
• Prediction
• Experimental Detection
• Functional Motifs
• Intrinsically Unfolded Proteins
• Relaxed Linear
• Static Headspace
• Gas Chromatography
• Method Using
• Chromatography –Mass
• Spectrometry
• Detection of Mycotoxins
• Economic Efficiency
• Efficiency and Development
• Barriers
• Costs and Concerns
• Conclusions
• References And Resources