Study On The Establishment Of Deposit Insurance Legal System In China

As the establishment of our bankruptcy law, the establishment of our bank bankruptcy law is on the schedule. The core problem is how to protect the benefit of the depositor's. Seeing from the experience, we have not established our legal system of the protection of the depositor's, while all the pressure to make remands was pushed to the government. This was not only an addition to the government burden, but the arbitrariness and temporary disposal of the government also resulted in the low-efficiency. It is deductive to restore the confidence of the depositors and the stability of the financial system.In the 30th of the last century, America had already established Glass Steagall Act and established the deposit insurance legal system. The theory is that the bank pays a certain rate of their deposit and when it was on the trust crisis, it is the duty of the insurance institution to help pay and make remedy. As the development of the modern deposit insurance regulations, the status of the deposit insurance institution has turned from pay box to a finance supervisor institution. In the end of 1999.according to the information from the IMF, there had been 72 countries all over the world who had already established their deposit insurance system.In the end of 2006, China promulgated the "Regulations on the management of foreign banks". According to the legal paper, there will be no location and customer restrictions to the Ren min bi area, which also encourages the foreign banks to register in china. The coming of the foreign banks, the reformation of the ownership of the state owned banks, and the increase of the private banks have all made our financial environment more and more complicated. China urgently need deposit insurance system to protect the interest of depositors and safeguard the security of the financial system. I probes into the basic theory, and combines the experiences of the feign counties and our own conditions. And I discuss some related questions about the deposit insurance system set up in china.In chapter 1, I probe into some basic issues of deposit insurance system. First, I display the reality background of the deposit insurance system so that I can give a brief view of its foundation, including the history of the deposit insurance legal system and its development. Noted that the deposit insurance legislation in the international arena and its extensive universality. And then I focused on the analyzing of its nation. From its non-profit, the specialty of the deposit insurance institution and the mandatory of the deposit insurance contract, I conclude that the deposit insurance is the policy insurance. And according to its operating rules, I concluded it to the duty insurance. I also probe into the valve and the negative effect of the deposit insurance legal system. It not only strengthens the stability of the country's financial order through the way of protecting the depositors and the banks, but improves the financial environment and increases the social welfare also. The existence of a deposit insurance system will inevitably have a natural defect which express in two aspects. The first one is moral hazard which means that since the protection of the deposit insurance that forced the depositors, the banks and the supervision institution to do harm to the other sides. The second one is adverse selection. I conclude that though the perfection of the deposit insurance system, the negative effect can be prevented.In chapter 2, I discuss the theoretical basis of the deposit insurance system, both in economy and law. In the economy area, modules from which resulting the random drawing theory, the theory of asymmetric information and the irrational run theory. In law, I conclude to three main valves of the deposit insurance system. These are the need to protect the depositors, the valve of justice and the valve of order. And then I discuses the legal relations of the deposit insurance system. Including the parties of the contract, the object and the content .In chapter 3, with the method of comparative analysis, construe the main content of the deposit insurance system of other countries. Including America ,since it is the first country to build the deposit insurance legal system in the whole world. Though not very perfect ,the practice of deposit insurance in Japan can be learned. Germany has the best industry autonomy ,the deposit insurance system is quite special from other countries in the world. The legislation of deposit insurance system in the international institutions and committees are also referential. According to this ,I express the main three legal papers of them. At last, I conclude the inspiration to our country.In chapter 4, I express the deposit protection situation of our country and conclude the defects.And then I explain the urgency to build deposit insurance system in china, and the conditions of the whole process. I express my own suggestion of how it can be constructed and the perfection of some related systems to the deposit insurance system.