Deposit Insurance Legal System

Deposit insurance system was first established by the US in 1930s,and since then, so many countries in the world have adopted it. At present, deposit insurance legal system is the main part of financial system in most developed nations. It is very important to protect depositors' interest, public confidence and safety of financial system. In China, banks are facing enormous risk, capital is deficiency and illegal phenomena occur. At the same time, it exists information dissymmetry between banks and depositors. So, depositors felt difficult in banking management and finance. If these questions couldn't be solved, banking failure will injure deposits' interest. In this condition, it's necessary to constitute deposit insurance law and set up deposit insurance legal system.Article consists in preface and three parts and conclusion. Preface explain why establish deposit insurance system in China, thereby make the content of the thesis more the content of the paper more definitude, so that suggestion come into true.First chapter of this thesis discusses the basic theory of deposit insurance law system. It illustrates the concept, character and function of deposit insurance system.Second chapter of this thesis analyzes the necessity and feasibility of establishing Chinese deposit insurance system. It illustrates why China must build up the system and why China can build up the system.Third chapter of this thesis draws up the general steps of establishing Chinese deposit insurance system, and attempts to give some suggestions. In this part, the author give six suggestions to setting up deposit insurance legal system: (1) constitute deposit insurance law;(2) stipulate deposit insurance institution's setup, status and function;(3) stipulate the mode, object of deposit insurance;(4) stipulate insurance's ratio; Stipulate parties' rights and obligations;(6) stipulate moral risk.The conclusion advanced the proceeding we must pay attention to. We shouldn't copy other countries, must set up our own deposit insurance system.