A Research On The Establishment Of A Deposit Insurance System In China

How the financial industry is guaranteed to operate safely and efficiently is an unavoidable big issue of today when the finance-oriented economy and the financial globalization are growing up very fast. Deposit insurance, which is set as a system of protecting the financial security of deposit organizations such as bank, has been always recognized in more and more countries for long time. So the maintenance finance system stability, relates our country economy the long term development, also is the establishment harmonious society's important constituent.As one of the Security Net of regarding against financial risks, the system of deposit insurance (DIS) has operated many years on aboard, and has played an important role on regarding against financial risks in some degree. The paper outlines the deposit insurance system, including the emergence, morphology, characteristics and functions of a deposit insurance system, and establishes a deposit insurance system on the theoretical basis from operation of the special nature of the banking system, conductivity and bank runs. Combination of China's economic form, the paper analyzes the current status of our deposit system and the reasons for missing of the current deposit insurance system of China's form the implicit government guarantees, the financial fragility and the limitations on banking supervision. The paper also details the comparison of foreign deposit insurance system and summarizes the experience and insights for our reference, specifically proposes the warning of establishment of a deposit insurance system in China according to the current financial crisis of United States.The paper specific analyzes the possible conditions of establishment of a deposit insurance system in China from the market financial system and market players. Then the paper put forward the idea of establishment of a deposit insurance system in China from the objectives, functions, mode selection and operating environment. At last, the paper discusses how to protect the deposit insurance system well-run from internal controls, financial supervision and information disclosure after the establishment of a deposit insurance system.