On Basic Issue Of Deposit Insurance Legal System

Deposit Insurance is simply a special form of insurance. If met the conditions, banks and various types of deposits of non-bank financial institutions which absorb deposits should affect insurance with the premium rate to the Deposit Insurance Agencies. When facing crisis or bankruptcy, the insured depository institutions can afford the deposit, the Deposit Insurance Agencies will pay a statutory amount of insurance. From the ascription view, Deposit Insurance belongs to a policy-insurance, and liability insurance. To prevent financial risks and insure financial security had become the most important issue for the financial industry. The system is, essentially, an institutional arrangement for all countries and regions, while it is also supervisory measures for the regulation of financial institutions during the market exit time of the banking institution.In China, the study of the Deposit Insurance is still at the initial stage, formal legal text has not yet been promulgated. We have been protecting deposits in national security forms for a long time; such temporary cooperation not only increased the government's fiscal expenditures and impacted the fiscal policy independence, but also delayed the time for disposal. In a word, we need to set urgently up a Deposit Insurance Legal System.In this paper, it is researched thoroughly of the basic theory and legislative constructions to the deposit insurance , synthetically , through the method of comparative studies, empirical analysis and historical study. This essay is formed by five chapters as follows:Chapter I: On the basic theory of the deposit insurance legal system. Firstly, we expatiating the meaning and characteristics of Deposit Insurance, followed by the analysis of the liability of Deposit Insurance Legal System for policy-oriented insurance, Liability Insurance and guarantee insurance. Then study the elements of legal relationship of Deposit Insurance Legal System, the value and function in the end.Chapter II: A comparative study of extra-territorial Deposit insurance Legal System. Successful experience is analyzed about other countries systematically to build up Deposit Insurance Legal System. Meanwhile, we sum up what kinds of attitude to take or factors to consider on Deposit Insurance Institutions, the insured, subject of deposit insurance, deposit insurance funds, deposit insurance premium rates, deposit insurance payment etc. This will provide a theoretical basis for setting up our deposit insurance system next.Chapter III: Objective analysis of the conditions in building up China's Deposit Insurance Legal System. Through the study of current development of China's banking industry as well as the deficiencies of existing legal system on deposit protection, we analyzed the necessity and feasibility of the Deposit Insurance Legal System theoretically and practically in China that cries for establishment.Chapter IV: Basic idea of the establishment of China's Deposit Insurance Legal System. The general principles of China's deposit insurance include legislative styles, principles and objectives; we confirmed its deposit insurance functions, the scope of insured financial institutions; we also introduced relevant provisions of the insured financial institutions about the way, the subject, limits and rates; finally on the fund-raising and operation of deposit insurance, the definition and disposal measures of accident.Chapter V: Explore the establishment and improvement of complementary systems and measures of China's Deposit Insurance Legal System. Setting up a benign operation requires a good matching system environment should: strengthen routine supervision of financial institutions, promote internal reform and self-discipline. Meanwhile, strengthen lender of last resort system of the central bank, set up a credit rating and corresponding information disclosure system.