Deposit Insurance And Our Banking's Stability Development Studying

Contemporary Deposit Insurance System is a product of the world economic and financial crisis in 1930's. Deposit Insurance System can protect depositor's interest, stabilize public confidence, prevents the bank panic and maintenance the whole banking's security. It is not only compositive part of west social safeguard system but also one of important contents of financial security network.Along with economic reform and financial structure reform, the risks of financial industry are being exposed increasingly. At the same time with entering into WTO, the step of approach international finance is nearing. It becomes a problem having to be studied and settled urgently how to rationally construct our country's system of deposit insurance, protect the interest of deposit and pledge normal payment of deposit, thereby defend the stability of the whole financial system. First after introducing the significance to select this title and the production of the research on deposit insurance in domestic and foreign circles this paper explains the producing and development of deposit insurance and sets forth the theory base of it's being. Then it analyzes negative effects and puts forward how to overcome them with analyzing and summarizing of American practice. In the end the paper demonstrates the urgency and positive significance of setting up the system of deposit insurance in our country with domestic condition and provides a framework about how to construct it.