The Deposit Insurance System In International Comparative Studies

Since American deposit insurance system was established in 1933 great success has been made on avoiding bank run and reducing financial risk. Deposit insurance system has been gradually accepted and adopted around the world.Chinese banking system is in the transition period of turning to market economy and regulated operation. Because of high unfavorable asset rate existed in our commercial banks, the bank system is in the state of high risky operation, therefore China sustained development and social stability has been greatly affected. Since China enters WTO, financial industry becomes more competitive, a stable financial environment is required. And the unique "Financial Stable Instruments" of deposit insurance plays an important role in Chinese banking reform. The thesis is to analyze the necessity and feasibility of establishing banking deposit insurance system in China by combining the successful experience of the deposit insurance system operation achieved in the developed countries and our banking industry's characteristics. The thesis will focus on the study of establishing Chinese deposit insurance system in the following five parts:Chapter1: Introduce briefly the concepts, characters and functions of deposit insurance. Also, introduce the establishment and development of deposit insurance in the world.Chapter2: Cover the theoretical basis of deposit insurance, the major problems arising from deposit insurance, and come up with the suggestions.Chapter3: Compare and summarize the main contents of deposit insurance systems in some countries. Especially discuss the American deposit insurance system in-depth about its establishment, development, and reform of the system, which encloses the apocalypses for our country.Chapter4: Reveal serious problems of high operating risk and out-of-the-market rules of the banking system in our country. Then, expound the necessity andfeasibility of establishing deposit insurance system in China.Chapter5: Make a specific design of deposit insurance system pattern in China in accordance with the characteristics of Chinese banking system.Using both quantitative and qualitative analysis methods, this thesis studies the operating principle of deposit insurance systems from different countries, especially the reform of the American. Based on the research and the facts of Chinese banking system, discuss major issues for the establishment of deposit insurance system in China.The important role of deposit insurance system to prevent bank run and financial risks has been systematically studied in western countries. While in China the relative research is just started, far from mature. Currently, China is still mainly focusing on the feasibility research for the set-up of deposit insurance system while the detailed plan is still absent. This thesis extensively discusses the problems arising from the establishment of deposit insurance, and proposes feasible solutions addressing these problems. These studies could be of significant importance for the design of China's deposit insurance system.