Tries To Discuss The Establishment Of Deposit Insurance System In China

Finance is the core of modern economy, along with the financial globalization,financial liberalization, the financial risk conduction mechanism is also strengthening,financial risk once erupts in one country, will spread to other countries rapidly andirresistibly, bring serious influence to the entire economics, how to guarantee finance safeand effective has become a serious topic which any country unable to avoid. Deposit insurance system established in 1930s, as one kind of financial risk guardmeasure, it enhanced the public confidence in banking industry, protected the depositorbenefits, maintained financial system steady and so on. Until now already more than 70countries and areas have established the system. Under the national credit, the run on a bank will not happen to the banks in chinatemporarily, but the banks of our country are processing in the market switching, massivefinancial risk which accumulated under the planned economy system will certainly exposegradually, after join WTO the risk faced will increase day by day. Therefore our country hasthe necessity to establish deposit insurance system as soon as possible. Any kind of system has dual character, deposit insurance system is not exceptional. Agood designed deposit insurance system can protect the depositor benefits, maintain financesystem stable and promote economy develop healthily, while a poorly designed oneencourages moral hazard, the negative function will surpass the frontage function.Therefore, when establish deposit insurance system in China, good system design is the key.In order to guard moral risk, our deposit insurance system should implement limit insurance,risk rate and so on. Limit insurance is to set a highest compensation quota to a depositor'sall deposits in some bank, compensates completely in the quota, surpass the quotaaccording to the proportion compensation. If crisis happens to a bank, the depositors willundertake certain loss, so encourages depositors to supervise the banks' management; Limitkind insurance refers that only carries on insurance to certain type deposit, lets other typesof depositors supervise the banks' management; The risk rate acts according to each bank'srisk condition, the high risk bank suits high premium rate, and the low suits the low rate. At present our country has already met some requirements of the deposit insurancesystem's establishment, like the multiple financial organization system, the sufficient andgrowing deposit and so on. To guarantee the deposit insurance system act healthy, mustoptimize the external environment, like speeds up the state-owned commercial bank'sreform, the establishment of financial credit ranking system and the public's financial riskeducation and so on.