Research On Establishing Deposit Insurance Legal System In China

Deposit insurance legal system plays important role on solving bank crisis in differentcountries, and it is also a very important part of the financial law. Deposit insurance legal systemis nearly perfect in developed countries, and also accepted in many developing countries. It isproved that deposit insurance legal system can protect the benefit of depositors and make thefinance system smoothly going on when banks bankrupt. But the deposit insurance legal systemhas not established yet in our country, so researching on this topic from legal view may haveimportant theoretic and realistic meanings.The topic is " Research on Establishing Deposit Insurance Legal System in China", thereare four chapters altogether. The writer will make use of some investigative methods such asdemonstration analysis, comparison analysis, history analysis and deductive method todemonstrate the topic.Chapter 1:The benefits of depositors cannot be protected properly when banks bankruptbecause of the limitation of current legal system and recessive deposit insurance legal system inour country. Once the depositors lose, it will falter the credit system of whole banks, and evencause the financial crisis. The good way is to establish deposit insurance legal system to protectdepositors and also guarantee the financial system with the safety.Chapter 2:Some legal theories about deposit insurance legal system will be explainedproperly in this part, primarily including four aspects: the legal theoretic foundation of depositinsurance legal system;the value of deposit insurance legal system;the legal character of depositinsurance legal system;subject, object and content of deposit insurance legal relation.Chapter 3:This part is to bring forward the legislation form of deposit insurance legalsystem in our country from 10 aspects,such as: Lawmaking style and lawmaking aim;thedeposit insurance organization and function orientation;the deposit insurance coverage;the wayof insurance;the rate of insurance premium;the standard of the deposit insurance indemnity;theway of circulating necessary funds;the insurance accident;insurance salvation;the way ofcompensating depositors and handling bankrupt bank.Chapter 4:The positive operation of deposit insurance legal system not only need scientific,reasonable design of it's own, but need establish some related legal system, a few aspects belowwill play very important role on it. After establishing deposit insurance legal system, our countryshould establish a complete, independent bank bankrupt legal system, which is oriented withadministrative procedure, and the bank supervision system will also take place to change: thethree organizations------China Banking Regulatory Commission, The People's Bank of China,and the deposit insurance institution will altogether take charge of the bank supervision job.Further more we should perfect the Lender of Last Resort System.