Study On China's Deposit Insurance System From International Perspectives

In 1829, The United States established the deposit insurance system, which set up the security fund composed of the shareholders' capital. Only when the bank went bankrupt, can compensation stipulated by the depositors be gained from the fund. In April 1971, Japan set up deposit insurance system, and then apply deposit insurance law. In 2000 Hong Kong enacted the Deposit Insurance Act. As an independent legal entity, The Deposit Protection Committee Improved the independence, transparency and accountability of the deposit guarantee. China's modern deposit guarantee system established in 1934, "implicit deposit insurance system" based on state credit provide guarantee to the banks. Implicit deposit insurance system not only hinders the deepening of Chinese financial reform, but also aggravates the government's financial pressure. Therefore, the deposit insurance system in May 1, 2015 put into practice.With the deepening of reform and opening-up and China's socialist market economic system establishment, macro financial control and regulation consummate gradually. As one of the three financial safety net for a country, deposit insurance system has significant influence on protecting the interests of depositors and maintaining financial stability, but in the insurance market, there exists moral hazard and adverse selection.Through a comparative analysis on international perspective of deposit insurance system and considering our national conditions, in case of moral hazard and adverse selection, bank supervision system should not only establish the function of qualifying for the insured financial institutions and risk supervision(regular, irregular), but also completed related legal construction and system construction. At the present time, the deposit insurance system of our country do play an active role only deposit insurance system adapt to the actual economic institutions. A new era of deposit insurance system opens up.