Research On China's Deposit Insurance And The Stable Development Of Commercial Banks

Deposit insurance system is a chosen system of modern financial development; it is in order to maintain financial stability or the protection of small depositors for a country or region. From the theoretical basis, deposit insurance system can effectively protect the interests of small and medium-sized investors, and to some extent, prevent bank runs, So as to maintain stability of the banking sector. As of October 2006, already 95 countries and areas have established the system, there are 23 countries are studying, plans and preparations for the implementation of the system.At present, China has not yet been established the open,legal protection of the deposit insurance fund or company, nor did the law clearly stipulates the scope of deposit insurance and payment methods, but in fact our country is a implicit almost full payment of deposit insurance. This implicit deposit insurance system has some flawed in the maintenance of financial stability, so it's not conducive to the development of China's commercial banks.This article study from the concept and function of deposit insurance and then study the change of China's financial conditions and the necessary of the explicit deposit insurance come to with the introduction of introduction deposit insurance system is maturing, our country has the conditions of establishment deposit insurance system, so in our transition to a market economy, the establishment of explicit deposit insurance system is particularly urgent; the establishment of a deposit insurance system should be combined with the current state of development of commercial banks and adapt to the development of commercial banks. At the same time, commercial banks should also establish and perfect their own early-warning mechanism relevant departments should also accelerate the social credit system in the establishment and perfection. In this way, the deposit insurance system can play its due role.