Reflections On Establishing The Deposit Insurance System Of China

The system of deposit insurance is one of the "Security Nets" for guarding againstfinancial risks. With the gradual exposure of financial risks in China and the strikes from foreign financial institutions after China's entry into the WTO, it is extremely urgent to establish the system of deposit insurance in China. This paper undertakes discussing and researching the point that why and how China should establish her system of deposit insurance .It analyzes the necessity of China's system establishment of deposit insurance, probes into the theory of the system of deposit insurance, compares with the contents of foreign systems of deposit insurance and draws lessons from other countries. On this base, the paper tries to design the frame of China's system of deposit insurance and to make suggestions for resoling possible problems when establishing the system.