Financial Regulatory Framework For The Design Of The Deposit Insurance System

National economic security is a hot topic in recent years, especially in the time of economy globalization after cold war, the content and key of strategy changed correspondingly. It include finance security, industry and market security, strategy material and energy security, economic information network security and so on, of the most important of which is finance security.Finance security network is an undividable ingredient of a country's finance basis structure and is an indispensable condition for the credit of bank and for the safely managing of finance system. The collapse of finance system will bring uncountable loss for the society; so many countries have built or are building all kinds of finance security network.The deposit insurance system, the supervision of financial supervises authorities and the last depositors of central bank are considered as the three base factors of the Financial Security Net. When it is difficult for banks which participated in the deposit insurance to turnover capital there will be default risk and bankruptcy, those banks may acquire capital assistance or capital compensation from insurance institutions according to the insurance contracts. However, China lacks of the obvious deposit insurance system nowadays.To establish the suitable deposit insurance system in China has become one of the national strategies in order to improve our financial system. In Jul.13, 2004, in the fifth BFA, Zhou Xiao chuan, the president of the central bank of China, made a speech, "We have to establish the mechanism which washes out those financial institutions with bad performance. In China, the deposit insurance system is the next thing to be considered. It is also the balance between finance stable and moral risk".This paper discussed the rhetorical analysis and the choice in mode of deposit insurance system. There are 5 chapters. Chapter 1 is the Introduction, and the main content is topics background and significance. Chapter 2 is theoretical analysis under financial supervision framework of the deposit insurance system. Chapter 3 is international Comparison of the deposit insurance system. Chapter 4 discussed potential banking crisis and the status of financial supervision in China. Finally, on the basis of previous four chapters, Chapter 5 focused on designation of China's deposit insurance system model.