Deposit Insurance System In The United States And Japan, And Enlightenment

The deposit is the basis of banking to subsist and develop, and a main way to manage money of residents of our country too. So, it is very important to prevent the risk of banking, protect the depositor's interests, avoid the run on a bank and the spread of financial crisis, thus keep the financial system steady.The recessive deposit insurance has existed all the time in our country. National credit guarantee the deposit of the state-owned commercial bank, and even the medium and small financial institutions. As a result, their business risk has been all shifted to the country. Under the situation that the reform of commercial bank is being deepened constantly of our country, the national guarantee withdraws gradually, some financial institutions begin to go bankrupt. The non-performing assets occupies larger proportion in the state-owned commercial bank, and the bank is often in risky state. Once some factors happen suddenly and cause the banking payment crisis and the depositor's confidence to collapse , it is certain that the run on a bank and even the crisis in all the financial system will happen. Therefore, the deposit insurance system is imperative in our country.The first part of this paper is the theory analysis of the deposit insurance system. The information asymmetry is the foundation that the risk of the bank comes into being. In face of the risk of the deposit, the depositor is extremely apt to be on the behavior of run on a bank because of the "prisoners' dilemma "psychology. As a result of the contagion effect of the banking risk, it must involve the whole financial system. This kind of behavior of "market failure" is the basis that the government sets up the deposit insurance system. But after the deposit insurance system is set up, it brings the questions of moral hazard, adverse selection and tolerant supervision so that the counter-measure must be taken.From the author's point of view, to set up the deposit insurance system, we should learn from the successful experience of the other countries. So in the core of this paper, the author compared the deposit insurance system of American andJapanese. At first the background, development course and reform of the deposit insurance system of this two countries were introduced. Then the author compared the organization and function of the deposit insurance institution, the source and scale of insurance fund, the insurance premium rate, the insurance coverage and the way to participate in deposit insurance system. At the same time the overview of other countries was introduced. The author thought it useful to draw lessons from other countries in the course of setting-up the deposit insurance system of our country, so the typical problems once took place and the countermeasures adopted by American and Japanese in the operation of their deposit insurance systems had been analyzed.The author analyzed the necessity to build the deposit insurance system for our country from the point of the main trend of the reform of commercial bank of our country. On the other hand, the author stated the restriction factor to set up the deposit insurance system in our country at present. At the end, the author proposed the program according to the realistic national conditions of our country.