To Build Our Country's Deposit Insurance System

Since America built Deposit Insurance System in 1934, a mass of countries followed it to make use of deposit insurance system to avoid and solve risks .Now Deposit Insurance System became more and more popular all over the world. After the 1990s, a series of changes took place in bank system. With the increasing the extent of market economy and freedom, a large quantity of innovations appeared which made the competitions between banks more crucial and their development more difficult. Thus the risks of the whole finance system enlarge and pooled and people gave more attention on avoiding and resolve the financial risks. So how to build counterpart Finance Security Network is the key to stabilization the public's confidence and bank system. Deposit Insurance System, a main part of Finance Security Network, had been running for over 70 years which indicated that its function of guarantee the finance security can't be neglected . Though form the beginning of its build has a dilemma in that in one side it can decrease the cost of bank system's crisis, but on other side it may result in greater risk which went against it original intention. So rightly cognition the function and disadvantage of Deposit Insurance System and rightly devise it can make a sample for other countries.In our country's long-term planned-system, nation had burdened all finance risk so if was no meaning to built Finance Security Network and Deposit Insurance System. But with the deepening of marker economy, finance risks exposed. And some bank and financial institution occurred some risk which indicate the hidden risk released and can become worse in the future. So validly handling the financial institution with problems, avoiding system finance crisis, spreading valid mechanism to drop out and sustaining the stabilization finance field.This essay can divide into five parts. First author introduce the conception of Deposit Insurance System .Second author presents the international development andinternational compare. Third author analyzes the necessarity and capability of construction Deposit Insurance System in our country. Last author focuses on the shortcoming of Deposit Insurance System to advance some counter-means.