Abstract
Along with the further comprehensive deepening of reform in China, the introduction of explicit deposit insurance system has been formally put on its official agenda. This paper brings forward two new perspectives about deposit insurance pricing model, which one is based on utility functions and another is based on No-Claim Discount (NCD) system. Deposit insurance rates and premiums of each commercial bank are actually measured & calculated with expected loss model; furthermore, this paper gives and designs NCD model embedded rate mode and reference rates for Chinese commercial banks based on hybrid approach in consideration of the premium rate determined using expected loss model.
Published Version
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