1. Text: | Print|

      Deposit insurance speeds up China's bank reform

      2014-12-01 16:49 Xinhua Web Editor: Qin Dexing
      1

      The establishment of a deposit insurance system will speed up China's bank reform through raising banks' competitiveness and promoting a fair financial environment, analysts said.

      The People's Bank of China (PBoC), the central bank, published draft rules for a deposit insurance system on Sunday and started soliciting public opinion after 21 years of deliberation.

      Under the draft rules, accounts with deposits of up to 500,000 yuan (81,500 U.S. dollars) will be insured per depositor if a bank suffers insolvency or bankruptcy.

      Deposits exceeding 500,000 yuan will be protected under a fund to help well-managed banks acquire other banks that have serious problems, thus protecting clients by having their deposits transferred to well-managed banks.

      Financial institutions will be required to pay insurance premiums into a fund and an agency be set up to manage the money. Domestic banks' overseas branches and foreign banks' China branches are exempt.

      "The purpose of the insurance system is to protect depositors, step up supervision of banks and prevent risk in the financial sector", said Zong Liang, deputy head of the international finance institute of the Bank of China.

      Thee scheme should stabilize the market expectations of depositors and increase public confidence in the banking system, especially improve the competitiveness of small and medium-sized banks.

      "The system will raise the credit and competitiveness of small and medium-sized banks, and level the playing field for China's fragmented financial system where megabanks traditionally enjoy greater credibility with depositors," said Guo Tianyong of the Central University of Finance and Economics.

      The Chinese banking sector is dominated by big state-owned lenders and their needs are not perfectly in line with small and private firms, who bear the brunt of high financing costs.

      "Thus the deposit insurance system will help promote a fair environment for all financial institutions," Guo said.

      China is one of several G20 countries that have yet to adopt deposit insurance scheme, which protects 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.

      Therefore, the deposit insurance scheme could help to foster a proper relationship between government and market,and help China's banks to operate more in line with market principles, a report from the Bank of Communications concluded.

      "With the scheme in place, the government will retreat and leave banks to bear their own risks and depositors will probably choose to put their money in banks with greater safety for deposits," the report said.

      The report suggested that the coordination among the PBoC, China Securities Regulatory Commission and the deposit insurance agency should be clear to avoid supervision overlap or a twilight zone.

      The report also advised that the deposit insurance agency should step up the supervision on problem financial institutions to prevent financial risks.

      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AV无码一区二区三区牛牛| 亚洲av综合avav中文| 亚洲av成人综合网| 51在线视频免费观看视频| 亚洲无线电影官网| 亚洲精品免费视频| 亚洲高清不卡视频| av无码免费一区二区三区| 亚洲免费电影网站| 毛片免费视频在线观看| 含羞草国产亚洲精品岁国产精品 | 亚洲AV无码AV男人的天堂不卡| 91在线视频免费看| 亚洲欧美综合精品成人导航| 国产一级高清免费观看| 日本在线观看免费高清| 亚洲日韩欧洲乱码AV夜夜摸| 久久精品国产免费| 亚洲激情视频网站| 在线免费观看色片| EEUSS影院WWW在线观看免费| 精品亚洲综合久久中文字幕| 精品无码AV无码免费专区| 亚洲综合色婷婷在线观看| 国产精品成人免费综合| 一区二区三区免费看| 亚洲视频在线观看| 免费的一级片网站| 国产免费一区二区三区免费视频| 亚洲av片劲爆在线观看| 国产91免费在线观看| 免费激情网站国产高清第一页| 亚洲成AV人片在线观看无码| 久九九精品免费视频| 日韩成人毛片高清视频免费看| 亚洲爆乳无码专区| 99久久综合国产精品免费| 成人久久久观看免费毛片| 久久亚洲精品无码AV红樱桃| 啦啦啦www免费视频| 最近2019中文免费字幕在线观看|