Deposit Insurance System, Legal Research

As the kernel of modern economy, the financial security will affect the national economic security and social stability. The Deposit Insurance system is very fatal in preventing the panic bank withdraw, limiting the financial stability in the part level, and keep the national finance and economy safe and obtain social security, by compensating the bankrupted financial institution's deposit. In the process of pushing our financial system reform forward, the prevention of systematic financial crisis is one inborn part of it. The reform of the State-owned commercial bank of China need the real independent subject of the financial market, and the government shall be stopped from the recessive warrantor. Therefore the deposit insurance will undoubtedly be the urgent call for settling the financial risks, and has entered into the substantial operating phase. Although the Deposit Insurance system has been shown in laws since it came into being, the studies on this system have been focused in the economics and finance more than in laws. And the law study in this system is less specific, systematic and profound than the other two. Therefore, the author selected the Legal Studies on the Deposit Insurance System, and tries to make empirical analysis and theoretical analysis on this issue by means of induction, deduction, and comparison. The author hopes to tell out what will the Deposit Insurance System do in law, how to build up a system for it, and make out a suggestion of the legislation of Deposit Insurance in China. Apart from the Preamble and Conclusion, the writing is consisting of four parts: Part I is the introduction of the issue. On the basis of background introduction, the author analyzed the reason of Deposit Insurance, and pointed out that the two reasons for this system also existed in China and therefore China needs this system. The author further pointed out that the aim of this writing is to find out how to build up this system in China. Part II is the analysis in microcosmic and macrocosmic. Firstly, in the micro level, the analysis on the subject, object and content of the system proves that the Deposit Insurance is to protect the interests of depositors by building up the legal relationship of the system. In the macro level, the analysis of the legal stand of this system in the laws on handling banking crisis tells out the system is an contractual form of all the measures of handling banking crisis, and will be the bottom line of financial stability. On this, the author held that that this system shall be rooted in the system of economic laws. Part III is the analysis of the key legal issues of the system. The author had given out a detailed analysis of the establishment of Deposit Insurance Institutions, the scope of Insurance, the scope of Insured Depositors, the Scope of Insured Deposit, the choice of Insurance method, the Insurance fees, the establishment of Deposit Insurance fund and the compensation of Insurance, so as to find out the legal response to the system. Part IV is the suggestion of the legislation of the system. The author has analyzed the legislative level, the legislative principle and the kernel content of the system, made out the relevant suggestion to the legislation, and discussed the supporting system of the Deposit Insurance. In the last part, the author carded the clue of the research, and made out induction and conclusion.