Investigation And Discussion Of Building Deposit Insurance System In Our Country

Deposit insurance system is a financial security system refers to all types of deposits eligible financial institutions together to establish an insurance agency, the insured depository institutions, as a certain percentage of their deposits to pay insurance premiums, the establishment of a deposit insurance reserve fund, when the member agencies of operating a crisis or facing bankruptcy, the deposit insurance agency to provide financial assistance or directly to the depositors to pay part or all of the deposits, thereby protecting the interests of depositors, safeguard bank credit, to stabilize the financial order in a system.In1933, the deposit insurance system established first in the United States, so far there’s been a history of70years old. During this period, nearly100countries worldwide have established a deposit insurance system. Along with the deepening of China’s financial reform, core in the financial system has a great change than before, but also as a WTO member, to fulfill the commitments of financial institutions in China also had a great influence on the decision-making. Under this environment, to analyze the foundation of deposit insurance system has a strong effectiveness and objectivity.After reading much of related literature, the article discussed about the current international pros and cons of the deposit insurance system, made an analysis of the system’s positive effect in protecting the legitimate interests of the public, how to maintain financial order and stability to raise the level of financial supervision, as well as poorly designed deposit insurance system brought about by moral hazard and adverse selection. Meanwhile, analyzed China which has been establishing in the necessity and feasibility of the system, made some improvement of the current international system base on the existing problems. Finally, based on China’s actual situation, made proposes to build an effective deposit insurance system, the external environment, as well as the establishment of the system in our country specific mode selection.