Establish The Basic Assumption Of The Deposit Insurance System In China

How the financial industry is guaranteed to operate safely and efficiently is an unavoidable big issue for 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.In Part I of this article, the necessities of China's establishment of deposit insurance system are totally analyzed in two angles: One is the Chinese legal environment; and the other is the present status of the banking system. The domestic banks have a bankrupt possibility as well as the bankrupt risks. The depositors are possibly suffered from losses on benefits and interests. Therefore, it is necessary to build a deposit insurance system. China's credit cooperative in countryside also has a big potential crisis, which may become an unstable element of the countryside. With reference to the practices of some countries in European Union, the author of this article designs an exclusive insurance system on the deposits of credit cooperative in countryside.In Part II a comparison analysis method is used to introduce the contents and implementations as well as the referable experiences to China in the future on the deposit insurance systems of economically developed European countries, the United States and Japan.The Part III is about the basis assumption of China's deposit insurance system. On this basis, the draft of Deposit Insurance Regulations is given. Also in this part, more contents of deposit insurance system operated on the lays of laws are discoursed upon. In fact, this system still covers a lot of concrete operation modes of insurance and accounting. Because these modes have no striking relationship with this article, the author ignores the discussion on them.