Research on the deposit insurance system

Author: Depository Insurance System Research Editorial Committee
Publisher:
Publish Date: 2003-12-01
Features: With the deepening of China's financial reform, establishing a depository insurance system with Chinese characteristics has become a strategic task for improving China's financial system and institutions. Under conditions of economic stability and a sound banking system, a well-designed depository insurance system can protect depositors' interests, prevent bank "runs" and contagion, enhance public confidence in the banking system, ensure equal public confidence for banks of different sizes, and promote fair competition among financial institutions. Additionally, the establishment of a depository insurance system helps to build an effective market exit mechanism, clarify the responsibilities of all parties in handling problem institutions, reduce government burdens, and ensure that the functions of the financial safety net are fully utilized.