The Effects Of Establishment Of Deposit Insurance System For The Bank Of Suzhou

In the financial crisis situation, confidence in a country’s financial system is very important. 2008 in the context of the subprime mortgage crisis triggered by the global financial crisis, the establishment of a deposit insurance system in China, this topic has been re-filed, because the establishment of a deposit insurance system to rebuild public confidence in financial institutions have an important role.Deposit insurance system is the development of modern finance, a country or region in order to maintain financial stability or protect small depositors an institutional choice. From the theoretical basis of the deposit insurance system point of view, he can effectively protect the interests of small investors, and to some extent, to prevent bank runs, so as to maintain a stable banking sector. As of October 2006, the world has 95 countries or regions to establish a deposit insurance system, as well as 23 countries are studying, planning or preparing for the implementation of this system. At present, China has not been established publicly, legally guaranteed deposit insurance fund or company, there is no clearly defined legal scope of deposit insurance and payment methods, but the fact is that China has adopted an almost full amount of implicit deposit insurance. This implicit deposit insurance system deficiencies in the maintenance of financial stability, is not conducive to the development of China’s commercial banks.This article embarks from deposit insurance and its the theory and principle research the financial environment and the status quo of city commercial banks in our country and analyze the beneficial effects and adverse effects of establishment of deposit insurance system for the bank of Suzhou and put forward several measures to cope with the adverse effects.