Study On The Establishment Of Deposit Insurance System In China

In the financial system, bank is the core of the financial sector. Because of its highdebt and high risk characteristics, causing the financial is relatively unstable. When thefinancial crisis, the bank will have great possibilities facing bankruptcy or collapse. Inorder to protect the interests of depositors in accordance with the law, guard against anddefuse financial risks, countries set up their own deposit insurance system timelyaccording to its national conditions and economic development condition. With thedevelopment of economic and social, the deposit insurance system constantly reformedand improved. Eventually, it is proved to be an effective system to maintain security andstability of financial markets. As a part of the financial safety net, deposit insurancesystem is a financial security system of universal implemented under the marketeconomy environment. It specific refers to deposit financial institutions, such as a seriesof banks, pay their own insurance premiums to deposit insurance institutions accordingto the statutory insurance rates. All the payment of premium together as the depositinsurance fund, which is set up to deal with the emergency, such as financial institutionsappear payment difficulties. Deposit insurance institutions through the way ofcompensating depositors for the provision of insured deposits to maintain the interestsof depositors, safeguard the steady of financial development order and improve thedepositor’s trust to banks.In the process of Chinese financial reform, some scholars called for theestablishment of deposit insurance system earlier. Given the real development ofChinese economy and the actual national condition, our country has been implementingthe recessive deposit insurance system based on the state government’s guarantee, notformally launching the official explicit deposit insurance system. However, all levels ofgovernment, the central bank, and the CBRC have been conducted a series of beddingfor the establishment of Chinese deposit insurance system. Combining with infinitelymaturation of the current financial market environment, characteristic deposit insurancesystem conforming to the Chinese conditions will be vividly portrayed. The paper is from the domestic and foreign present research and basic theories ofdeposit insurance system. First of all, through expounding the specific situation of threerepresentative countries’ deposit insurance system, and then summed up theenlightenment for China to establish the deposit insurance system. Secondly, accordingto the Chinese present economic development situations and a simple empirical analysis,emphasizes the necessity of establishing explicit deposit insurance system in China.Finally, I will analyze and design the specific content of Chinese deposit insurancesystem according to the actual national conditions of our country, put forward theauthors’ opinions and suggestions, state the possible impact after its implementation indetail. Which can provide some references for the officially launched of depositinsurance system in our country later. Make the system really suit to China’s nationalconditions and play an important promoting role on China’s financial system reform andthe stability of the financial system.