Research on the deposit insurance system

Author: Liu Shiyu
Publisher:
Publish Date: 2006-08-01
Features: Since the 1980s, countries have worked to establish financial safety nets to reduce the likelihood of financial crises and mitigate their social costs. Among these, the explicit deposit insurance system has been rapidly adopted. To date, approximately 90 countries and regions worldwide have established explicit deposit insurance systems. As international deposit insurance systems have become increasingly and their functions have gradually strengthened, their role in protecting depositors' interests and maintaining financial stability has become more evident. The Chinese government places great importance on protecting depositors' rights. To gain an in-depth understanding of the advanced experiences and best practices of international deposit insurance systems, explore the feasibility of designing China's deposit insurance system, and promote the establishment of a deposit insurance system tailored to China's national conditions, the People's Bank of China hosted the "International Deposit Insurance Forum" in Dalian from September 15 to 16, 2005. The forum conducted in-depth discussions on seven topics: the role of financial safety nets in preventing systemic financial risks, the objectives of establishing the crucial component of the deposit insurance system within the financial safety net, the management of deposit insurance funds and the design of premium rates, the scale and investment of deposit insurance funds, the governance of deposit insurance institutions, deposit insurance programs, and the Basel New Capital Agreement. The focus was on exchanging experiences from countries in establishing deposit insurance systems, exploring the direction of international deposit insurance system development, and providing recommendations for designing China's deposit insurance system in line with its specific national conditions. This book is a compilation of the materials and discussions from the forum. The manuscript is of high quality, and its content offers strong reference value for China to effectively learn from international deposit insurance system experiences, enhance the scientificity of establishing a deposit insurance system, and expedite its implementation. The book is divided into two parts—Chinese and English—with a total of approximately 350,000 words.