Financial System Reform Under The Perspective Of The Deposit Insurance System In China

Financial industry is the core of modern economy, while the banking sector is the core offinancial industry. The stability of banking sector is important to the development of moderneconomy. However, the bank’s nature of operating in debt causes some inherent risks, and islikely to trigger a systemic financial crisis, or even leads to the decline of overall economy.The construction of the deposit insurance system, in order to protect the safety of bankingsector, is one of the main contents of the financial system reform. In this paper, the depositinsurance system only refers to the explicit deposit insurance system.This article is constituted by the introduction and the first to the fourth part of the body：The preface introduces the research background and significance, Research, researchand innovation, ideas and methods for the introduction of full-text part.In the first part, the reform of the financial system and the deposit insurance system aredefined, and we can draw a relationship between the two: Building a deposit insurancesystem is important to build the deposit insurance system is an inevitable requirement fordeepening the reform of China’s financial system, reform of the financial system macrodevelopment direction for the deposit insurance system. Obtained by analyzing the course ofChina’s reform of the financial system reform "progressive" and "radical", supplemented bythe reform trend for the liberalization of financial markets, the bank interest rate market andfinancial institutions to mixed. With the trend of the reform of the financial system decided tobuild the deposit insurance system and trends.In the second part, the paper analyzes China to build the deposit insurance system facedthree major issues: first, general deposit insurance system of explicit deposit insurancesystem only broadly include implicit deposit insurance system. Recessive insurance system inChina is a product of the reform and opening up, with the continuous deepening of the reformof the financial system, its shortcomings have become increasingly apparent, can not meet thegradual market-oriented financial system; related systems imperfections affect the effectiveoperation of the deposit insurance system: financial safety net is not perfect, the bankingmarket exit mechanism lack of information disclosure system weak; third, the banking industry structural imbalance of the insured subject has no insurance initiative.In the third part of the text, this paper compares the foreign deposit insurance systemsfrom three dimensions, summed up the experiences and lessons of the foreign depositinsurance system to provide useful lessons for the formulation of the deposit insurancesystem in China. First, from the perspective of the stage of the reform of the financial system,the deposit insurance system in the characteristics of the different period of the reform of thefinancial system, the radical reform of the financial system is drawn in some countries thestress response to the financial crisis, the deposit insurance system which students, whileother countries learn from the experiences and lessons of the former, through the gradualreform of the financial system, to establish a deposit insurance system in line with theirnational conditions to guard against financial crisis and achieved good results; second, fromthe perspective of the legal system comparative analysis of the foreign deposit insurance legalsystems, drawn with the course of the reform of the financial system and the continuousdevelopment of international norms; third, from the development trend perspective, comparedto national deposit insurance system changes, summed up the development of the depositinsurance system trend.In the fourth part of the text, obtained on the basis of the previous discussed I think: First,the reality of conditions that have to build the deposit insurance system in China: goodmacro-economic environment, banking reform achieved initial success, financial and legalnorms are increasingly improved; Second, we must dominance of implicit deposit insurancesystem, the most effective way is to legislation, the development of the deposit Insurance Actregulating the deposit insurance system is the first step to building a deposit insurance system;third, improve the relevant systems running auxiliary effective deposit insurance system.China’s financial safety net, including sound, improve the banking market exit mechanism,improve the information disclosure system. A well-designed deposit insurance system will beable to effectively prevent the banking crisis and maintain financial stability, deepening thereform of the financial system, promote the construction of China’s socialist market economy;Fourth, the optimization of the banking structure, not only to the prosperity of the bankingmarket, to enhance the competitiveness of banks, but also promote the effective operation ofthe deposit insurance system. This paper adopts the economic analysis, historical analysis, empirical analysis and otherresearch methods, in the financial system reform under the perspective of deposit insurancesystem as the research object, aiming at building problems faced in the deposit insurancesystem in our country, draw lessons from foreign successful experience and draw lessonsfrom it and combining our country’s concrete national condition, proposed conforms to thesituation of our country’s deposit insurance system framework. Deposit insurance system isone of the constitute the basic elements of modern financial safety net, is the importantcontent of financial system reform in our country, a set of well-designed deposit insurancesystem will be able to effectively prevent the banking crisis, maintaining financial stability,we must deepen the reform of the financial system and promote the construction of socialistmarket economy in our country.