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European Deposit Guarantee Scheme And Its Reference To China

Posted on:2014-08-23Degree:MasterType:Thesis
Country:ChinaCandidate:L L WangFull Text:PDF
GTID:2256330401477959Subject:International Law
Abstract/Summary:PDF Full Text Request
Deposit Guarantee Scheme (also can be called deposit insurance system) is onekind of finance safety scheme, it is a insurance institution and normally establishedby authority or credit (finance) institution. Credit institution is as the insuranceapplicant and pay the insurance premium which calculated by the rate of risk ordeposit amount, then the premium would be used to establish the insurance fund.When there is “problem bank” appears (the risk of credit institution or bank runhappens), the depostit guarantee scheme will provide support to the credit institutionor directly refund the relevant deposit to the depositor.Explicit deposit insurance is a measure implemented in many countries toprotect bank depositors, in full or in part, from losses caused by a bank’s inability topay its debts when due. Deposit insurance systems are one component of a financialsystem safety net that is meant to promote financial stability to European Union;additional, it is an inevitable tool to maintain the internal market and economicintegration. Although the deposit protection system in Europe faced the challenge ofthe severe economic situation, it is successful on the whole. At present, Hong Kongand Taiwan has already had the deposit guarantee system; however, until now, thereis no explicit deposit insurance in China, despite the general provisions that toencourage household deposit and savings, the government shall protect the ownership and other legitimate rights on household deposit and savings. On July,16th,2012, theChinese Central bank (People’s Bank of China) published the “Twelfth Five-yearDevelopment Program”, and the Chapter7has highlighted that establish the DepositGuarantee Scheme in China. Moreover, the Program illustrate that the Depositinsurance system would be established during the period of the “Twelfth Five-year”,at the same time, do legislation and introduce the “Act of Deposit Insurance System”.Furthermore, it is also recommended that define the function and arrangementstructure of Deposit Insurance System, therefore, the plan to establish DepositInsurance System in China become more clear and mature.To be more manifest, Chapter1focuses on European level. It will illustrate thedeposit system in European Union, particularly analyze the Directive94/19/EC of theEuropean Parliament and of the Council of30May1994on deposit-guaranteeschemes; Chapter2will concentrate on the system development of several countries(i.e. Germany, U.K. and Belgium), it will introduce the history background; thecharacteristics of certain scheme that including funding, coverage and membership.Then, take the historical perspective; describe the changes and challenges afterDirective2009/14EC, at last, define and evaluate the system development in thecountry. Chapter3focuses on analyzing the core legal issues on the establishment theDeposit Insurance System in China. The legal issues are: the way to arrange thedeposit insurance institution, the scope of credit institution to join the insurance, thescope of insured deposit and depositor, and the membership of deposit insurance, thescope of the insurance rate, the deposit insurance fund and the coverage. The lastChapter would describe the design and suggestion of the legislation in this fieldwhich also fit and adapt to the special national conditions in China, therefore give areasonable legislative structure to the establishment of the Deposit Insurance Systemin China.
Keywords/Search Tags:European Deposit Guarantee Scheme, The Legal Issues on Establishing the Deposit Guarantee Scheme, The Establishment of China’s Deposit Guarantee Scheme
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