Exploration Into And Research On Building Deposit Safeguard System In China

With the development of market economy and deepened reform of financial regime, to establish an efficient withdrawal mechanism in financial market composes a focal point attracting the attention of the whole society, and unprecedented emphasis is placed on deposit safeguard system. Especially after State Council agreed to set up deposit safeguard system in principle at the beginning of 2005, research on the system becomes one of hot topics in financial theory field. This paper comprehensively discusses and analyzes deposit safeguard system building pattern in China in five aspects. Also, on the basis of foreign experience, the paper aims at working out a right way for building up a deposit safeguard system where both motivation and competition coexist. The outline of this paper is organized as follows. Part one provides research objective, expected contribution and literature review; it also summarizes research framework and new findings in the study. Afterward, part two develops the issue of deposit safeguard system by addressing its theoretical background, main content, function effectuation and side effect. Then, part three sums up development trend of deposit safeguard system and workable suggestions proposed by International Money Fund (IMF) after comparing practice and implication of deposit safeguard system between developed countries and developing countries (regions). Next, in part four, an initial proposition of deposit safeguard system building pattern is stated, which includes target establishment, institution construction, fund foundation, insurance scope definition and insurance fee stipulation. It is suggested that the system be built up in a practical and gradual way. Lastly, part five tries to explore issues of method improvement and environment optimization so as to make deposit safeguard system function efficiently. It refers to completing and realizing government support policy, improving and enhancing supervision over banks, improving and deepening corporation governance in banking industry.