Study On Chinese Deposit Insurance System

Contemporary Deposit Insurance System is a product of the world economic and financial crisis in 1930's. In 1933, Federal Government established Federal Deposit Insurance Company (FDIC) in order to restrain Bank Runs effectively. From then on, almost all developed countries, partial developing countries and districts such as India, Colombia and Taiwan, also established Deposit Insurance System. Deposit Insurance System has taken effect fully in aspects such as maintaining the confidence of the public, protecting the interests of the depositors, preventing the bankrupt of the commercial banks, stabilizing finance and accumulating crisis funds.Our country has been carrying out the State Credit Guarantee System which maintained the confidence of Chinese people on Financial System and assured long-time finance stability positively in the past. But with the developing of Chinese Financial Structural Reforms and expanding the opening of the Chinese financial situation, the negative influences produced by the State Credit Guarantee are getting more obvious. By drawing on the experience of Federal Deposit Insurance System, the paper refers to the necessity of establishing Chinese Deposit Insurance System in view of existing situation, designs Chinese Deposit Insurance System Model and improves exterior environment of carrying out Chinese Deposit Insurance System.The paper consists of five chapters. They are as follows:l.Introductory.2.Positive study on American Deposit Insurance System. This chapter analyses systematically the formation and features of American banks, and it also investigates origin, background, management mechanism, existing problems and reforms of Federal Deposit Insurance System.3.The necessity of establishing Chinese Deposit Insurance System. This chapter demonstrates the necessity in two aspects: 〆xterior environment factors: formation of Market Economy, expanding the opening of the Chinese financial situation and Financial Structural Reforms; @ existing problems: the limitation of financial management and many negative influences produced by the State Credit Guarantee.4.Design of Chinese Deposit Insurance System. In this chapter, the paper establishs Chinese Deposit Insurance System model and initially forms a relatively independent financial managing department-Chinese Deposit Insurance Company(CDIC).S.Improvement of exterior environment on carrying out Chinese Deposit Insurance System.