Deposit Insurance:International Experience And China's Operation Mechanism Research

The China finance safety net is formed by three pillars of final loaner, prudential supervision and deposit protection, The former two have protected the stable development of China finance and turned out to be quite effective after thousands of challenges. The deposit insurance system, as the last protection pillar, was put into operation on May 1st 2015 with the implementation of deposit insurance regulations. There is no doubt that the three in one unit safety net has provided another protection for China finance development but also consolidate depositor's trust.However, international experience tells us that the deposit insurance system is not no danger of anything going wrong. The American deposit insurance system has a history of 83 years yet failed in its savings and loan crisis. And the UK deposit insurance system has been in operation for 34 years but caused Northern Rock Crisis as a result of its orientation as "pay box" at the very beginning. India, second developing country that set deposit insurance system, did not balance the relationship of the three pillars because its deposit insurance system is enslaved to its central bank. It is only one and half years since the establishment of the deposit insurance system in China and there is a long way to go. So it is practically valuable to analyze the international experience of deposit insurance system to adopt the good part and reject the bad ones.There existed implicit guarantee protecting the deposit offices in banks in our country before the implementing of deposit insurance system. It seemed that the implicit guarantee is better than the insurance system from previous experience. The research content of this paper, first the basic theory of deposit insurance are discussed, the Chinese and foreign scholars on the deposit insurance system and the arguments are compared, combined with the lessons of international deposit insurance system research, international experience and China objective factors, and through the methods of literature research, quantitative analysis, case study, empirical analysis, function the analysis method and experience summary method, system scientific method to achieve impartiality, objectivity and academic nature.The thesis presents best suggestions for the following matters on deposit insurance system through arguments, comparisons and analysis:policy orientation, organization form, supervision role, functional authority, join-insurance mode, entrance limits, fund-raising mechanism and the rate mode.