Deposit Insurance System Under The Background Of China's Financial Reform Construction

Deposit insurance system is to maintain the stability of the financial system andprotect the interests of depositors, a financial institution established arrangements, and thecore is to establish market-based risk treatment, prevention and market exit mechanism.Financial security mechanism for the country in general, including the People’s Bank hasthe responsibility of lender of last resort, with the prudential supervision of financialregulatory agencies as well as the functions of the deposit insurance system of the threecomponents. At present, China is still not established this important pillar of the depositinsurance system. For a long time China has been executed by the government reveal allthe "hidden" deposit insurance system is not conducive to long-term stable development ofthe financial system. At present, China’s financial reform has entered a crucial period, inthis case, as an important pillar of the financial safety net to steadily build a depositinsurance system, for our country’s financial market reforms to increase depositorconfidence in the micro-depository institutions and the whole country financial security,plays an important role.Since the United States implemented in1933," Glass-Steagall Act," since the depositinsurance system in the world has been running for80years, has long been China is alsoactively exploring how to establish compliance with China’s actual situation of ’dominant’deposit insurance system. The deposit insurance system under study around the reform ofChina’s financial system to build an international reference and launched a detailedanalysis, to explore the establishment of a relatively complete functions, rights andresponsibilities of coordination, can function effectively and adapt to China ’s nationalconditions "dominant" Deposit Insurance regime. This study reviews the theory of thedeposit insurance system, and the evolution and development of the deposit insurancesystem; analysis of the institutional background of China’s current situation anddevelopment of the deposit insurance system; summarizes the international comparisonwith international reference the deposit insurance system; and focuses on our depositsinsurance system to build the framework and future prospects. China raised the depositinsurance system should be given its " risk minimization " type functions, build mandatoryparticipation model, to cover all bank deposit-taking financial institutions, the quotasystem and differences in rates of payment mechanisms established prior accumulation inthe form of deposit insurance fund and deposit insurance system to give certaininformation verification and risk management responsibilities. Also pointed out that the future will be in the deposit insurance legislation, and coordinated development of theexisting system of banking supervision, financial institutions risk assessment and tariffadjustments and other aspects of further study.