Research On The Construction Of The Deposit Insurance Law System In Our Country

Deposit Insurance Law System, Prudential Supervision System and central bank’s Lender of Last Resort are the three pillars of a country’s financial safety net. As early as 1933 the United States formally established Deposit Insurance Law System. In the process of economic development, especially during the financial crisis, U.S. Federal Deposit Insurance Corporation took a series of measures for insolvent financial institutions to take the great extent to stabilize the financial markets and living. The system has been recognized by more and more countries in terms of stabilizing the economic order, preventing financial risks, and enhancing depositor confidence. Our country has not yet established a dominant law system of deposit insurance, but as a national credit guarantee, the run on the bank in question when dealing with a crisis or even bankruptcy led by the People’s Bank of China, as to the state’s financial support. However, this implicit deposit insurance is easy to enhance moral hazard of banking institutions, increasing the burden on national finances. So, our theoretical level and the government level have been discussing the establishment of explicit deposit insurance legal system. In this paper, starting from the status of our country, the author analyzes the necessity and feasibility of the establishment of explicit deposit insurance legal system, and on this basis to discuss on the system in the process of establishing operations in the micro-level issues.This paper is divided into three parts:The first part is an analysis of the current situation of China’s deposit insurance. On the one hand, our country has not yet introduced explicit deposit insurance law system, but implicit deposit insurance has been implemented for many years. On the other hand, our theoretical level and government level have been discussing the issue of the establishment of explicit deposit insurance legal system.The second part is the necessity and feasibility analysis on China’s legal system to establish deposit insurance. I believe that our country has now reached the best time to build the system.The third part, the author puts forward recommendations to build our legal system of deposit insurance in five areas as institutional settings, premium rates, the insured, insurance coverage, improve relevant laws and regulations.