Study On The Comparison Of Deposit Insurance Legal System

In most countries, banking performs as financial intermediation between depositors and borrowers. It is the most important financial institution that evaluates risks, carries out monetary policy and provides service of payment and settlement. But the structure of its assets makes bank extremely weak in face of problems of liquidity and solvency. In addition, banking sector has to maintain current assets to satisfy normal withdrawal due to its high leverage. In view of this instability and fragility, governments of different countries realize that improper disposal of bankruptcy will cause contagion among banks and arouse more complex problems in banking system. So most governments establish safety net for banks, including deposit insurance system.Deposit insurance system is the system that requires qualified banks and other financial institutions to pay deposit insurance institution premium according to premium rate to insure their deposit. When the insured institutions can not pay for withdrawal because of crisis or bankruptcy, deposit insurance institution will pay the stated insurance amount for them.Financial regulation system in China is not prefect now, and deposit insurance system has not been established. With the trend of economic and financial integration as well as unification of financial legal system of the world, China needs to learn experience and lessons from other countries and establish deposit insurance system accounting for its actual situation. This dissertation includes three chapters:The first chapter is the summary of deposit insurance system. This part generally introduces the concept, beginning and development of deposit insurance system. Then this part sums up the property and character of the system after analyzing its theoretic foundation. Besides this fundamental introduce, it analyzes the function and negative effect of the system and relevant control measures, establishing a theoretic foundation for the analysis below.The second chapter performs international comparison of deposit insurancesystems in different counties and areas. This part first enumerates the typical practice of the systems in developed countries as well as India and Taiwan; then abstracts them into several types from comparison and analysis; lastly summarizes the develop trend of deposit insurance system.The third chapter is about the establishment of deposit insurance system in China. In light of China's present situation and necessity to establish the system, this part expounds how to establish proper insurance deposit system and improve corresponding measures.