1. Text: | Print|

      Deposit insurance key to further financial reforms

      2014-02-11 07:53 Xinhua Web Editor: qindexing
      1

      Preparations for a deposit insurance system have been finished, said China's central bank over the weekend, in the latest signal that the world's second-largest economy is ready to further overhaul its financial system.

      "Over recent years, the People's Bank of China (PBOC) has worked with relevant departments to conduct in-depth research and repeated analysis on a deposit insurance system," the PBOC said in a quarterly report on its website. "All preparations are now basically ready for establishing a deposit insurance system."

      Similar language was seen in the PBOC's annual work conference communique in January. Those words were markedly different from earlier quarterlies, where the PBOC said it would "advance the construction of a deposit insurance system."

      China is one of several among the Group of Twenty countries that have yet to adopt such a scheme, even after the State Council, China's cabinet, said as early as December 1993 that it would "establish deposit insurance funds to safeguard public interests."

      Expectations were renewed in November 2013 when the scheme was promulgated as part of an ambitious reform plan in a key document issued by the Communist Party of China.

      Deposit insurance is a widely implemented measure to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due.

      The insurance adds a layer to the financial system safety net and promotes stability, as its absence usually implies a compulsory role for the state in dealing with bank runs.

      Without deposit insurance, the state -- taxpayers' money, in fact -- is at stake in guaranteeing bank savings. In other words, banks enjoy protection that others do not have, contrary to the market-economy principle.

      China has one of the highest savings rates in the world, and at a time of straining liquidity as the U.S. Federal Reserve looks poised to continue scaling back its quantitative easing, it's high on the Chinese government agenda to strengthen confidence in its financial system facing more default risks.

      Deposit insurance could help to foster a proper relationship between government and market, a principle vigorously campaigned for by the Chinese government of late.

      Studies also have shown that deposit insurance helps to enhance smaller banks' position, leveling the playing field for China's fragmented financial system, where megabanks traditionally enjoy greater credibility with depositors.

      Comments (0)
      Most popular in 24h
        Archived Content
      Media partners:

      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.

      主站蜘蛛池模板: 亚洲另类小说图片| 亚洲熟妇无码爱v在线观看| 亚洲大尺度无码无码专线一区| 免费人成在线观看网站品爱网| 亚洲av中文无码乱人伦在线播放| 久久嫩草影院免费看夜色| 亚洲午夜精品一级在线播放放 | 亚洲开心婷婷中文字幕| 国产精品免费看久久久香蕉| 久久久精品国产亚洲成人满18免费网站| 亚洲AV成人无码网天堂| 国产a不卡片精品免费观看| 成人在线免费视频| 在线观看国产区亚洲一区成人 | 亚洲精品国产综合久久久久紧| 热99re久久免费视精品频软件| 亚洲精品无码专区| 亚洲福利在线播放| 免费福利电影在线观看| 亚洲美女视频免费| 中文字幕av无码无卡免费| 亚洲欧美熟妇综合久久久久| www亚洲精品少妇裸乳一区二区| 国产A∨免费精品视频| 亚洲福利视频导航| 成人免费无遮挡无码黄漫视频| 国产亚洲视频在线| 国产亚洲无线码一区二区| 色老头永久免费网站| 国产成人精品日本亚洲语音 | 又色又污又黄无遮挡的免费视| 在线视频网址免费播放| 亚洲精品一区二区三区四区乱码| 毛片免费观看视频| 在线免费观看h片| 亚洲国产精品网站久久| 亚洲AⅤ优女AV综合久久久| 99视频精品全部免费观看| 亚洲精品无码成人| 久久精品7亚洲午夜a| 天天干在线免费视频|