The Establishment Of Deposit Insurance System In China From The International Experience

As the market economy system was established in China and the finance market was opened, the competition of banks is more and more fierce and the risk of operation is growing day by day. It is possible for banks to go into bankruptcy. Deposit Insurance System (DIS) is such a special insurance means that a county requires finance institutions dealing in deposit to pay to a special insurance institution by lawmaking. When the policy holder run into crisis, the special insurance institution will provide fund aid to it. The purpose of DIS is protecting benefit of depositor and maintaining the stabilization of finance market. The article want to use experiences of countries having established DIS for reference and summarize the development trends of DIS, to discuss the establishment of DIS in China according to the finance situations of China.The first part of article introduced the theories basis, the history and the effect of DIS. In the second part, the need and feasibility of establishing DIS in China were analyzed. In the third part, the international experiences of DIS and three representative modes were introduced and the development trends were summarized. The fourth part conceived the DIS of China, and pointed out that China should establish an imperative DIS based on risk evaluation. In the end of article, the difficulties of establishing DIS in China were analyzed and some countermeasures were proposed.