Study On Chinese Deposit Insurance System

In recent years, both the total assets of commercial banks and the balance of RMB deposits showed rapid growth. February 13,2014, according to the CBRC updated "banking financial institutions’balance sheet situation (legal)", it shows that at the end of December 2013, total assets of the banking institutions reached 151.35 trillion yuan. This is an increase of 13.27% over last year total liabilities amounted to 141.18 trillion yuan, which is up by 12.99%. It is an increase of 13.8%,104.38 trillion yuan deposits is higher than the previous year by 0.4 percentage points. In the ever-expanding size of deposits, which is now past unsustainable by the state deposit guarantee depositor safety practices, the state’s financial burden to bear a huge invisible.This implicit deposit protection is relative with dominant deposit insurance. It refers that the national legislation establishes a special deposit insurance agencies, when the bank is unable to pay the insured deposits of depositors, the deposit insurance institute a system of payment. At the end of 2013,112 countries around the world have established a deposit insurance system. Deposit insurance system as an important part of China’s financial reform has been in full swing, and it launched a great possibility to establish in 2014.It is from the perspective of commercial banks that to study the deposit insurance system in China to be established. Chapter one introduces our rapidly expanding deposits background, indicating the significance of the article. It states foreign practices in deposit insurance coverage, objects, and other aspects of the payment amount and the status of research of scholars. This paper analyzes the proposed deposit insurance policy innovation in the commercial banking perspective. The second chapter references to the concept of deposit insurance and the analysis of its strengths. It states the essential features of the full implicit deposit insurance guarantees and other countries, and analyzes its high cost, weakening investor risk awareness and leading to unfair competition and other defects. The third chapter analyzes the deposit insurance system from the perspective of commercial banks. According to international experience organizational model of deposit insurance, the insurance object, the way insurance, insurance coverage, payment amount and premium rates, etc., individually applied to our country, from the perspective of commercial banks. Commercial banks analyze their experiences and China’s economy may cause impact. The fourth chapter reviews the deposit insurance system in Germany, and the background of the United States insurance system. These systems and the impact on the domestic economy summed up in the question of legislative and policy concern. The fifth chapter summarizes the results of the analysis in this paper, our deposit insurance should be organized by the government; all commercial banks must participate in the system; ordinary depositors deposits should be protected; single-rate system should be implemented in the initial. When the law, the market and the system is improved, we can choose the launch rate system, such as risk premium.