Reflections On Establishment Of A Deposit Insurance System In China

Deposit insurance system is to protect the interests of depositors and maintain thestability of the financial system for one country, and seting up the deposit insuranceinstitutions as insurance authority, the deposit institutions pay insurance premium, when thesavings institutions bankrupt due to an accident of debts the bankruptcy can have financialsecurity. Deposit insurance system has many irreplaceable role, making it widely applied invarious countries. However, with practice of identity instead, the debate of scientific theoryabout deposit insurance system never calms, the reviewing and combing of these theories andviews can help to control the deposit insurance system. Some experts and scholars think thatthe establishment of the deposit insurance system can overcome the instability of the bank,and protect the interests of depositors, especially protect the interests of most of the creditors.At the same time,it also can improve the public confidence in Banks, and help to curb run,guarantee the stability of the banking system; Establishment of a deposit insurance system isalso the requirement of the program to deal with the bank with serious problems on the brinkof bankruptcy.Deposit insurance system and financial supervision and the central bank of the prudentsupervision lender of last resort is recognized as the three basic elements of the financialsafety net, to establish a deposit insurance system with Chinese characteristics, has become astrategic tasks about China’s deepening financial reform and perfecting the financial system.Central bank governor zhou xiaochuan has said: In China, the deposit insurance system is thenext step thing to consider, and is also a balance between maintaining financial stability andpreventing moral hazard.The research about the content related to deposit insurance has beenthe key research object of the currency market and financial markets.Study limitationsincluded the domestic and international deposit insurance. With the development of economyand the depth of the world economic contact, deposit insurance system more and morebecomes the focus of attention, the research about this also has never interrupted.Reasonablely profit from the overseas achievements and experiences, establish China’sdeposit insurance system, perfect our country’s risk prevention system of deposit insurance,and develop our country economy healthily and stablely, On the special background of theinternational economic links increasingly close, and the globalization of the internationalfinancial market, especially headed by the U.S. subprime mortgage crisis lead to theworldwide financial crisis and the European countries sovereign debt crisis, which makes theresearch about deposit insurance more pressing.To determine the topic-----“Reflections on establishment of a deposit insurance system inChina”as the graduation thesis, is based on the current economic situation. This paper regardsresearch status of the domestic and overseas deposit insurance system as a starting point, andreviews on the base of the theory related deposit insurance system, and analyzes the necessityand feasibility of the establishment of deposit insurance system,mainly to study theconstruction of the deposit insurance system and explore its mode selection,Through the study, comparison and analysis, a more complete understanding of the content of the depositinsurance system is formed, and scientific and effective recommendations about selecting thedeposit Insurance and the establishment of a deposit insurance system can be received, duringthe course of future economic development of China.