The Deposit Insurance System Building Study In China

In the whole economy, the bank as a payment intermediary and credit intermediary, plays an important role, but banks can't be overcome because of their own vulnerability, but also prone to run crisis that led to the socio-economic shocks. Deposit insurance system through effective system designed to prevent bank runs occur and protect the interests of depositors and maintain financial stability. As one of the three major financial safety nets, deposit insurance system has been accepted and successfully used in many countries. Although the system may lead to moral hazard, adverse selection and other issues, which questioned by many scholars, by improving the design of the system can effectively reduce these negative effects.With the development of economic globalization and China's deepening of market-oriented reform, China's banking industry faces increasing risks. China's banking sector reform, due to a number of historical issues lead to asset-liability ratio is relatively high, operating risk, and vulnerable to external shocks, while groups of special savings, but also need the government strengthen the protection of the banking sector. For a long time, even though China did not establish a deposit insurance system, but in fact is an implicit implementation of deposit insurance system, the system not only increased the financial costs and because there is no legal requirement to run with a random, easily lead to moral hazard. With China's rapid economic development, the system can no longer meet the needs of maintaining financial stability, the urgent need to establish a deposit insurance system. According to theory of institutional change, the system only requires the introduction of effective sound system design, but also need the right institutional environment, economic development and stability, legal system increasingly sound financial supervision and constant improvement of the establishment of deposit insurance system in China provides a good system Environment.How to design a suitable condition of our country, improve the deposit insurance system, the need for the international deposit insurance system in the present a detailed analysis. Paper analyzes the United States, Japan and Germany's deposit insurance system, the system of the three countries more representative, but also in maintaining financial stability in countries play an indispensable role in the deposit insurance system for the analysis of the three countries Based on the article Finally, the framework of the deposit insurance system design recommendations, including deposit insurance institutions in the organization, responsibilities, insurance coverage, setting premium rates, compensation limits and other major aspects of the insurance fund.