Research On Establishing Deposit Insurance System In China

Prudential supervision, lender-of-last-resort facilities and deposit insurance are three fundamental elements of one nation's financial security. One cannot avoid financial risks because of financial fragility. While protecting deposits and their owners, deposit insurance system maintains stability for financial system.On the study of deposit insurance theory and practice in foreign countries, the paper expounds the feasibility and necessity of establishing China's deposit insurance system and draws up the deposit insurance system pattern in accordance with China's status quo.