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Study of deposit insurance pricing model for listed banks in china based on RV method

  • Pei Wu Dong*
  • , Xue Zhou Zhang
  • , Xin Yao
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

As Chinese financial reform is deepening, the construction of the deposit insurance system has been one of major theoretical and practical issues on the financial system reform in China. This paper adopts Ronn & Verma pricing model, and calculates the tolerance parameter of listed banks in China, which is 0.95, then constructs the deposit insurance pricing model for Chinese listed banks. The insurance rates of five Chinese listed banks are calculated in the pricing model by collecting their financial information. The result shows a greater gap between the rate of each banks and the average rate, which supports that China is appropriate to adopt the different risk-based rates system of insurance pricing rather than the single rate system.

Original languageEnglish
Title of host publication2008 International Conference on Management Science and Engineering 15th Annual Conference Proceedings, ICMSE
Pages1301-1305
Number of pages5
DOIs
Publication statusPublished - 2008
Externally publishedYes
Event2008 International Conference on Management Science and Engineering 15th Annual Conference, ICMSE - Long Beach, CA, United States
Duration: 10 Sept 200812 Sept 2008

Publication series

Name2008 International Conference on Management Science and Engineering 15th Annual Conference Proceedings, ICMSE

Conference

Conference2008 International Conference on Management Science and Engineering 15th Annual Conference, ICMSE
Country/TerritoryUnited States
CityLong Beach, CA
Period10/09/0812/09/08

Keywords

  • Deposit insurance
  • Insurance rate
  • Ronn & verma model
  • Tolerance parameter

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