Study On The Pattern Of Deposit Insurance Agency Dealing With Problem Bank

Since the deposit insurance system was created, after long development, the system has spread throughout the world. The original purpose and core of this system is to maintain the interests of the depositors and the credit order. During the past few years, deposit insurance agencies have showed the transition from the role of pay box to manager of risk. Accordingly, besides cash payment, deposit insurance agencies also add other functions, including risk management and dealing with problem banks.With problems continuing to occur in banking institutions, how to handle them properly becomes an important issue again. Therefore, this article will discuss the pattern of deposit insurance agencies dealing with problem banks. By way of analyzing the existing achievements, exploring legal issues involved, and drawing lessons from foreign mature systems in comparative law, to make the system of China more complete and perfect.This paper defines the purpose and function of deposit insurance agencies first, from which the value of deposit insurance agencies dealing with problem banks will be recognized, and then combs related systems in the United State and Japan in detail. coupled with the experiences and lessons from the two countries, Combined with our country, the article discusses the disadvantages of our system which include fuzzy positioning of deposit insurance agency, deficiency of preventive measures, lack of bridge bank and take-over system and the responsibility trace system for the problem banks’staff, incomplete principle of least possible cost, then propose some constructive suggestions.