Status Analysis Of Deposit Insurance Around The World

The financial crisis frequently occurred around the world since the1990s. Countriesand regions are facing growing financial risks, and they are trying to establish andimprove the financial safety net. Deposit insurance system (DIS) is adopted by moreand more countries and regions in the world for they can not only protect the benefit ofdepositor effectively, but also curbs dangers of financial system caused by individualdefective financial institution. As of January2014, there were112members of theInternational Monetary Fund (IMF) had been established the deposit insurance agencyamong all190members, at a rate of accounting for58.95%.This dissertation begins with theoretical basis of DIS, and then sums up the featuresand classifications of DIS (involving goals, organization forms, coverage insuredobjects, insured qualification, premium rates, and limitation of claims) by analyzingthe DIS features in United States, Japan, India and other countries. In addition, thepaper discusses the moral hazard and adverse selection issues in DIS, and then showsthe experiences in preventing the moral risks in DIS by studying the case of the UnitedStates.The article also discusses the necessity and feasibility of DIS establishing in China.The necessity includes the DIS’s benefits in precaution against financial risks, meetingthe needs of interest marketization, and reducing the financial burden. The feasibilityincludes China’s good legislative environment, the plenty of insurance object andresource, the rapid developing regulatory system, and the implementation of savingsreal-name system.On this basis, the article makes suggestions to the DIS establishing in China. Also, itanalyzes the environmental optimization in establishing the DIS in our country.