The Legal Character And Function Of The Deposit Insurance Agency Under The Background Of The China(shanghai) Pilot Free Trade Zone

The China (Shanghai) Pilot Free Trade Zone was founded in September2013, as of February of this2014, the reform and openness have attracted1383financial institutions stationed in Shanghai Pilot Free TradeZone.As one of the important measures to safeguard the financial reform,Deposit Insurance system will play its important role. As to promotefurther development of the financial sector, the importance of financialsecurity system in China has caused widespread attention in the academicand practical circles.From the disposal of typical cases, we can find that, in a long time,our country adopt an implicit deposit insurance system. The Central Bankand the Central Government act as the Lender of Last Resort. This implicitdeposit insurance systemhave a negative impact on the development of theShanghai Pilot Free Trade Zone.On the establishment of Deposit Insurance Agency, combined with thecurrent conditions that our banking industry is regulated by the CentralBank and the CBRC, the writer suggest that the Deposit Insurance Agencyfunded by the Government. On the problem of function of the Deposit Insurance Agency, first ofall it should have the regulatory functions against financialinstitutions;secondly the should guarantee that the Deposit InsuranceAgency has the right and ability to deposit the financial institutionsin problem; and lastly, the right of the Deposit Insurance Agency in thebankruptcy of financial institutions should be taken into consideration.