Risk Prevention Of Deposit Insurance System

Deposit insurance system plays an important role in protecting the depositors'interests and maintain the stability of a country's financial order, but it may also contain risks in the respects of morality and banks'operation. Based on the reference to the research literature on deposit insurance system home and abroad concerning its establishment and operation, this paper carries out theoretical analysis on the risks in the operation of foreign deposit insurance system and compares them, and then it refers to the countermeasures and the improvement taken by foreign deposit insurance agencies against the risks in several influential financial crises in the history, from which the paper gets enlightenment that seen from the insurers'perspective, different ways of implementation of deposit insurance system lead to different risks, the existence of which requires the deposit insurance agencies to solve a series of problems in their establishment and operation including risk-based tax rate system, deposit insurance agencies, loss minimization, etc. Finally the paper proposes how to prevent risks in establishing deposit insurance system in China as well as in operating the deposit insurance system in the future combined with the present situations in China.