Moral Hazard of Deposit Insurance System

Deposit insurance system regulations have been formally implemented since May 1,2015. At the same time,moral hazard is inherent in its own risk. Therefore the research about moral hazard of deposit insurance system and the moral risk control become more important. Based on the above considerations,moral risk types and effects of deposit insurance system are described at first. Afterwards the deposit insurance moral risk formation mechanism is expounded through the use of discourse theory and option pricing model systematically. Finally combining with the status quo of China's economic environment and the deposit insurance system development and learning from international experiences,the paper puts forward three relevant policy recommendations including the establishment of external restraint mechanism,the improvement of the regulatory environment and the deposit insurance system of publicity and education.