Research On Explicit Deposit Insurance System Construction Under The Perspective Of Market Discipline

How to construct deposit insurance system is a hot topic that is drawn extremely attention by China's academic theorists since the new century, whereas in the last three years, a series of actual operation adopted by Central bank makes this topic officially progress from fundamental research to the practical operation in relation to the establishment of the deposit insurance system.Constructing China's deposit insurance system ,we should not only recognize the fact that the existence of the implicit deposit insurance in our country but also learn from the operational condition and successful experiment about the international deposit insurance especially bring in the new concept of International bank supervising—market discipline to improve the design of deposit insurance. New angle of view according to the relationship between market discipline and deposit insurance enjoys the theoretical basis and practical significance to the construction of China's deposit insurance system.After demarcating the deposit insurance and the market discipline, then analyses the relationships between them, explicates the moral risk caused by deposit insurance especially implicit deposit insurance could weaken the market discipline. Therefore we should bring in market discipline to reform the deposit insurance system. We have adopted the implicit deposit insurance system guaranteed by authority continuously. From the diagnosis research of China's banking industry market discipline; we could realize the restriction function that implicit deposit insurance poses to banking market, which convinced the correctness of the theory, mentioned above further.Nowadays, the market discipline is emphasized by various countries when newly building or improving the deposit insurance system. China should absorb the precious experience from the reform above; abandon the existing implicit deposit insurance system. On the basis of consummating the outside supporting system of deposit insurance, carry on the optimized choice about deposit insurance system designed characteristic from the deposit insurance organization form, the establishment of insurance funds, the implementation degree of the insurance, the establishment of premium rate and so on. On the purpose of establishing the explicit deposit insurance system which reflects both our country's actual situations and the advanced ideas parallel to the outside world, thus in realization of the financial stable development simultaneously enhancement our country's banking industry binding force.