On Bank Stability And Deposit Insurance System

The core of the modern economy is the finance, and the problem of the finance is the problem of the finance development and finance security. The development of the finance can promote the growth of the economy, the security of finance is the base of the development of the finance and economy. For the globalization, how to make the finance work efficiently is a duty of each government. Many nations pay more importance to the deposit insurance as a system of security of the deposit institution.On the day that more and more nations and international organization pay more attention to the deposit insurance, what should China do? Our banks do a lot in the development of the economy, we can say that the stability of the finance is equal to the stability of the banks, the crisis of the finance system is equal to the crisis of the banks. So it is important to stabilize the system of the banks.This paper consists of the four parts:The first part: it points out the aim and usage of this paper, and provide the basic information of the Chinese and foreign papers.The second part: it makes accounts of the necessity of the deposit insurance, points out since the instability of the banks and the defects of the national and joint banks, so we should set up the deposit insurance system.The third part: it points the basic function of the deposit. The paper state that its promotion of the economy by analyses.The fourth part: it points out several problems we should pay attention. The paper states the defects of the invisible deposit insurance, and advises how the system should function.