The Environment Maturity Analysis On The Establishment Of Chinese Deposit Insurance System

More than120countries have been fallen into the financial crisis during thepast30years in the world, especially the Mexican financial crisis, the Asianfinancial crisis and the global financial crisis triggered by the U.S. in the1990s. Allthese crisis showed that: With the ever-accelerating process of economicglobalization, all the countries are facing the increasing financial risk, these financialrisks are not only a serious challenge to the national economic security and financialsovereignty, but also a great threat to the interests of bank depositors. The depositinsurance system has played an important role in protecting the interests ofdepositors and promoting financial stability in developed countries. Timelyintroduction of a deposit insurance system has become a major institutionalinitiatives to improve the financial regulatory system and enhance the vitality offinancial institutions and protect the economic interests of their residents in China.Since the State Council decision on the reform of the financial system proposed"the establishment of the deposit insurance fund to protect the interests of the public"in December1993，the "marathon" exploration and research on establishment of adeposit insurance system has been more than20years in China. However, thedeposit insurance has not been carried out because of hinderconstraints in theenvironment. Currently, along with the successful advance of the joint-stock reformof Chinese banking and interests rates gradually accelerated the pace ofmarket-oriented reforms, not only the internal demand but also external environmenton the establishment of the deposit insurance system in China are becoming moreand more mature. Now, the Economic environment, the micro financial environmentand policy environment have been undergone earth-shaking changed. Therefore, theargument of the best time to establish the deposit insurance system in China is veryimportant for perfecting our financial system and promoting the healthy development of financial markets.It is based on this background and in-depth research in this article. First, itmakes a brief introduction to the related theories on the deposit insurance system toexplicit deposit insurance system of the relevant concepts, properties and mainfunction. Second, the theory of inherent vulnerability of financial institutions,financial institutions, deposit insurance system and financial panic theory are stated.Third, the system structure, features, and the development of the countries whichhave already set up deposit insurance system are analyzed, and summarizes andanalyzes the deposit insurance system operation environment in the process of thesupply situation. Fourth, the article focus on China’s economic environment, theonlookers environment and policy environment to conduct a comprehensive analysisand understanding, have the full launch of deposit insurance system in our countryexport of environmental conditions. Last, it puts forward specific ideas to builddeposit insurance and to correspond opinions and suggestions according to the actualsituation in our country.