The Deposit Insurance System Will Be Launched Soon. Chinese Officials Will Talk About Four February.

Hu Xiaolian, vice governor of the people's Bank of China, 27

At the annual meeting, the central bank will accelerate the marketization of interest rate and establish a deposit insurance system, while guarding against all kinds of potential financial risks.

Reporters noted that, including Hu Xiaolian's statement on that day, the top Chinese officials talked about the deposit insurance system at least four times in the past two months.

Prior to that, in September 26th, Premier Li Keqiang of the State Council of China, speaking at a meeting with foreign representatives attending the Eighteenth International Bank Supervision officials conference, said that China's financial reform and opening up has entered a new stage. It will promote financial reform and innovation with greater determination and strength. By relaxing market access, allowing all kinds of capital to participate equally in financial market competition, establishing a deposit insurance system to better protect the interests of depositors, and orderly expanding the opening of capital and money markets.

In October 12th, Zhou Xiaochuan, governor of the people's Bank of China, attended the thirtieth meeting of the international monetary and financial committee and said that China would set up a deposit insurance system in due course.

In October 30th,

Vice President Yi Gang, at the Financial Street forum, said that the establishment of deposit insurance system has made great progress and is "approaching maturity".

It is worth noting that this year's government work report will focus on the establishment of the deposit insurance system and the improvement of the risk management mechanism for financial institutions in 2014.

According to media reports, the central bank held a teleconference on the national deposit insurance system within 27 days, and studied the deployment of the deposit insurance system in January next year.

It is understood that

The deposit insurance institutions that meet the requirements should pay insurance premiums to specific insurance institutions and deposit insurance reserves according to a certain proportion of deposits.

When a member organization has a business crisis or is faced with bankruptcy and bankruptcy, the deposit insurance institution shall compensate the depositor according to the prescribed standards in time and participate in or organize liquidation in accordance with the law so as to protect the interests of depositors, maintain bank credit and stabilize financial order.

Public data show that 111 countries (regions) have established a deposit insurance system.

Although China has not established the explicit deposit insurance system, the government has always implemented the implicit deposit insurance system.

Guan Qingyou, executive director of Minsheng Securities Research Institute, believes that the hidden deposit insurance system has many disadvantages.

First of all, the implicit deposit insurance system drives state-owned banks to engage in high-risk businesses and increase moral hazard. Once the banking crisis is formed, the state finance will eventually be paid.

Secondly, the implicit deposit insurance system makes banks "state-owned" the only indicator of depositors' allocation, weakening market competition, and is not conducive to the development of small and medium-sized banks.

In the eyes of the outside world, the government has recently released a positive signal on the deposit insurance system, which means that the deposit insurance system, which has been brewing for 21 years, is on the horizon, showing signs of acceleration.