Deposit insurance System to save the people and put together a security line

Jing Mei Financial Network November 30 (reporter Lichuntian) "Deposit Insurance Regulations (draft)" for public consultation today for the community. Central bank [Weibo] said that the core of the deposit insurance system is to fully protect the interests of depositors, which is the starting point and foothold of policy-making.

Deposit Insurance is the deposit insurance fund which is paid by the deposit bank, and the Deposit Insurance fund is used to pay the depositor in time when there are problems in the operation of the individual deposit bank.

As a basic institutional arrangement of financial industry, deposit insurance has been developed for many years in the world, which plays an important role in protecting depositors ' rights, preventing and resolving financial risks. At present, more than 110 countries and regions in the world have established deposit insurance system.

As early as 1993, we began to study and demonstrate the establishment of the deposit insurance system related issues, and through the relevant departments, experts and scholars and financial institutions to fully discuss. The Deposit Insurance Regulation (draft), which is aimed at the community, will provide a clear institutional guarantee for the security of the public's deposit in the form of legislation. This system is to improve and strengthen the existing financial safety net, on the basis of existing policies to the people to add a "security line of defense."

Generally speaking, the perfect financial safety net is composed of the central bank lender of last-person function, prudential supervision and deposit insurance system.

The central bank is a "Bank of banks" that can safeguard the stability of the banking system by strengthening macro-prudential management and providing liquidity support, and prudential supervision is conducive to promoting prudent banking compliance.

After the establishment of deposit insurance system, through clear deposit safeguard system arrangement, stabilize market and depositor confidence, it is the further consummation and enhancement of our country's financial safety net, which is helpful to further improve the overall efficiency of our financial safety net, promote the healthy and stable operation of the banking system, and better protect the interests of depositors.

The Deposit Insurance fund, the bank capital and the deposit reserve are the three lines of defense for the banking system to deal with risks, and the three complement each other. Bank capital, as the cost of bank operation, is first used to bear the risks and losses of bank operation, and provides a layer of security mat for creditors such as depositors. The deposit reserve can be used to meet the emergency liquidity needs of financial institutions. The Deposit Insurance fund is used to protect depositors in the event of serious risk to the banks, safeguarding public confidence and financial stability.

After the establishment of deposit insurance system, it is beneficial to protect the rights and interests of depositors, safeguard financial market and public confidence in our banking system, promote the formation of market-oriented financial risk prevention and resolution mechanism, and establish a long-term mechanism to maintain financial stability. It is helpful to further strengthen and perfect our financial safety net so that the risk can be discovered and seldom happened Strengthen the ability of China's financial industry to resist and dispose of risks, to strengthen market discipline, to create a fair competition market environment, in order to speed up the development of private banks and small and medium-sized banks, to increase the financial support of small micro-enterprises escort.

In the case of financial risk, precaution is more important than the ex post-treatment. The deposit insurance system can further strengthen the market restraint of financial institutions and promote prudent and sound operation of financial institutions so as to better protect depositors ' deposit security.

After the establishment of deposit insurance system, according to the risk situation of different financial institutions to determine their differential rates, can promote the financial operation of the institutional mechanism to further improve the financial institutions to enhance self-restraint and internal control management, promote its sound management and healthy development. At the same time, in order to guarantee the security of Deposit Insurance Fund, the Deposit Insurance fund Management institution will strengthen the identification and early warning of risk, take corrective measures in time, make the risk early detection and less occurrence, and help to further improve the soundness of the banking system.

As for the concern that depositors need to pay premiums, the central bank said that the deposit insurance system, as a basic institutional arrangement of the national financial Safety net, is financed mainly by the premiums paid by financial institutions, and depositors do not have to pay premiums. After the establishment of deposit insurance system, only a small proportion to the financial institutions to collect premiums, the rate level is much lower than the majority of the state deposit insurance system at the beginning of the level and current level, financial institutions have little financial impact.

Source: Jing Mei Financial Network http://jingmeihouse.com/

Deposit insurance System to save the people and put together a security line