Study On Issues Of The Deposit Insurance System In China

Deposit insurance system, as an important member of maintaining financialstability and security, can help to reduce the probability of the occurrence of financialrisks through protecting the interests of depositors and dealing with problem financialinstitutions. As of January2014, there are113countries or regions which haveestablished deposit insurance system around world. The establishment of a depositinsurance system in China is under way. So it is necessary and urgent to take adeep-going study on China’s deposit insurance system.This paper is divided into three parts. The author conducts an analysis on theestablishment of deposit insurance agency etc., and put forward feasible suggestionsthrough some investigative methods such as demonstration analysis, comparisonanalysis, history analysis and deductive method.What are the functions of China’s deposit insurance agency? Who should fundthe deposit insurance institution? What’s about organizational form? In part one, theauthor focuses on resolving these problems and proposing the specific ideas in linewith China’s national conditions.There are many deposit products in China. Which ones should be protected bythe deposit insurance system? On the basis of relative international experiences,determining which financial products are accepted by China’s deposit insuranceagency and stating reasons. As the applicant of deposit insurance legal relationship, insurance institution isan important subject. Which insurance institutions are qualified? To understandinternational practice through comparing and analyzing legislative provisions oninsurance institution in some states and regions.The author explains how to determinethe scope of insured institutions according to current development of China’s financialinstitutions. The author discusses controversial problems in detail, such as compulsoryinsurance, the eligibility of state-owned commercial banks and of foreign banks.