Research On Legal Issues Of Deposit Insurance System In China

Since the Reform and Opening up,with China's rapid economic growth, financial sector has developed in stability while financial security is under threat. As a financial safety net for one of the three basic elements of the deposit insurance system to protect the interests of depositors in a nation, maintaining financial stability is of great significance. On March 31 st, 2015, the State Council released the deposit insurance regulations(promulgated by Decree No. 660), scheduled to take effect on May 1st, starting the era of explicit deposit insurance system in China. However, the deposit insurance system of our country is insufficient in the specific implementation, including: The deficiency of the construction mode of deposit insurance fund, the broad scope of deposit insurance contract, multiple of obstacles in the implementation of differential rate system, disadvantages in supervision authority of deposit insurance institution, the contradiction between the insurer and the deposit reinsurance, the deficient protection of the legitimate rights and interests of depositors etc. As such, it is necessary to improve the deposit insurance system in terms of the legal system of the deposit insurance, meanwhile to further strengthen the early risk detection and remedial policies, and to improve the information disclosure system, to establish the risk evaluating system of financial institutions, at the same time to strengthen cooperation between banks and their own internal management. This paper tries to start with the basic theory of deposit insurance system, analyzes the existing problems and puts forward the corresponding countermeasures, in order to improve the legislation.