Study On Law Institution Of Deposit Insurance

The current wide-spread financial crisis which originates from America, not only provides promising opportunities for the development of deposit insurance system, but also puts forward severe challenges for its effective enforcement. How to cope with the challenges and seize the opportunites has become a difficult subject in current researches on deposit insurance system.In most countries, banks perform 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 when facing problems of liquidity and solvency. 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. Therefore most governments establish safety network for banks, including deposit insurance system.Deposit insurance system is the system that requires qualified banks and other financial to pay insurance premium according to for the premium rate to insure their deposit. When the insured institutions can not pay withdrawal because of crisis or bankruptcy, deposit insurance institution will pay 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. Following to the model of the deposit insurance system to the deposit insurance legal system, the thesis analyses the deposit insurance system and the deposit insurance legal system, then compares foreign legislation of deposit insurance system and international cooperation, concludes the experiences of foreign countries.At last the paper puts forward the construction of our country's deposit insurance legal system based on the analysis of our situation.Besides preface and conclusion, there are about 40,000 words in the thesis, which is divided into 4 parts:The first part is the summary of deposit insurance system. In this part, the concept, beginning and development of deposit insurance system are generally introduced. Then through the analysis of its theoretic foundation, the property and characteristics of deposit insurance system are summarized, establishing a theoretic foundation for the analysis below.In the second part, the author carries out a theoretical analysis of deposit insurance system, based on current bank and epidemic bank crisis theory, the function of deposit insurance system, and the analysis of the negatives of deposit insurance system. From the perspective of philosophy of law, the author analyses the legal value of justice and order value of the deposit insurance system, and further demonstrates the necessity of establishing the deposit insurance law system.In the third part, the author carries out comparison of deposit insurance systems in different countries and areas. The author first enumerates the typical practice of the systems in developed countries as well as India and Taiwan; then abstracts them into several types through comparison and analysis. Finally, the author summarizes the implications of the deposit insurance systems in different countries for our country.In the fourth part, the author focuses on the construction of our deposit insurance legal system. In the course of construction, we should draw experiences from foreign countries for reference and base on our own situation. The aim of our deposit insurance legal system is to protect depositors'interests especially the small depositors'interests and maintain the stability of financial system to the biggest limit. We should enact the legislation of deposit insurance system. Then we should set up non-profitable deposit insurance company funded by government. The financial institutions which absorb deposit should be compulsory to pay the insurance premium according to risk-adjusted ratio. The object of deposit insurance is deposit, and the limit of compensation sum should be set. At last, supporting laws and regulations should be perfected to ensure the effective enforcement of deposit insurance system.In conclusion, We must set up our own deposit insurance system and absorb the advanced international experience instead of copying the practice adopted in other countries. Meanwhile, the financial market is under constant change and development, for which our deposit insurance system should keep pace with the times and be optimized unceasingly.