Legal Research On Early Correction Mechanism Of Deposit Insurance System In China

As one of the three pillars of the national financial safety net,the deposit system plays an active role in preventing financial risks and safeguarding the interests of depositors.In2015,China also formally established the explicit deposit insurance system and issued the first legal norm of deposit insurance-Deposit Insurance Regulations.The focus of deposit insurance is not payment but prevention.As the basic system of deposit insurance,the early correction mechanism plays a key role in the concrete implementation of the deposit insurance system.Although our country has taken early corrective measures for a large number of insurance institutions since the establishment of the system,and at the same time,it has solved the risks of some institutions,but after all,the establishment time is short and the relevant system is still immature.At present,the regulations on early correction in China are scattered in different levels of laws and departmental rules,and lack of systematization.Most of the provisions in the Deposit Insurance Regulations are more principled,and the provisions for early correction are vague and lack of operability.Generally speaking,the current early correction mechanism of deposit insurance in China still has defects,and there are unreasonable and unclear places in the distribution of functions of early correction institutions,early correction intervention standards and the arrangement of corrective measures.In view of the above problems,this paper discusses the improvement of the early correction mechanism of deposit insurance in China in four steps.First of all,starting from the legal definition of early correction and the current situation in China,this paper briefly introduces the related concepts of early correction,respectively describes the legislative status of intervention standards and measures of early correction,and at the same time,introduces the institutions that exercise the authority of early correction and the practice of early correction in China.Secondly,it points out the existing problems from three aspects: early correction of power allocation,intervention standards and intervention measures.Thirdly,by studying and comparing the early correction mechanisms of deposit insurance in the United States and South Korea,it is concluded that deposit insurance institutions in one country should have independent legal status,and the intervention standards of early correction should be diversified.In addition,for early corrective measures,it is better to adopt the mode of combining mandatory measures with selective measures within the framework of gradual structured intervention at present,which can not only prevent regulatory tolerance,but also make the corrective measures flexible.Finally,after analyzing the three problems existing in China’s early correction mechanism and summarizing the excellent experience of foreign countries,this thesis gives corresponding suggestions on the current early correction mechanism of deposit insurance from three aspects: power allocation,early identification of problematic institutions and early correction measures.