Deposit insurance system is expected to launch next year (Chart)

Prompted the core: the central bank study by the Secretary Zhang Jian Hua was held in Beijing Wednesday of the 14th Session of the cross-strait financial seminar that has been submitted to the State Council set up a bank deposit insurance scheme, the mechanism is expected to be set up next year.

The bank will set up a deposit insurance scheme will provide 98% of deposit accounts to provide insurance

Bank of research by the Secretary Zhang Jian Hua was held in Beijing Wednesday of the 14th Session of the cross-strait financial seminar that has been submitted to the State Council set up a bank deposit insurance scheme, the mechanism is expected to be set up next year.

Since 1998, the central bank has been trying to set up a deposit insurance mechanism, the mechanism has been included in the government's 2008 policy objectives.

It is reported that Zhang Jian-hua pointed out that the forthcoming establishment of the deposit insurance system should cover all banks, including commercial banks, cooperative banks, urban credit cooperatives and rural credit cooperatives and postal savings banks and other deposit-taking financial institutions, this mechanism will be 98% of the deposits Account to provide insurance.

Zhang Jian-hua said that the implementation of the deposit insurance limit for payment, that is, in insured deposit-taking institution is revoked or becomes insolvent, depositors in the institution's deposits in the limits can be paid in full; more than the deposit insurance limit from the agency still has the right to liquidation of assets Be recovery if the depositor in the same deposit insurance agency to open a number of deposit accounts, the account balances together.

He mentioned that the main source of the deposit insurance fund for the deposit insurance agency to pay the deposit insurance premiums. In order to prevent improper use of bank deposit insurance or the risk is too high to bear, the difference in the rate mechanism will be implemented.

Zhang Jianhua stressed that the mechanism is also available from the central government in the hands of the central bank and the borrower.

At the moment, the financial crisis led to the worldwide collapse of a large number of banks or the Government hosted in many countries stepped up efforts to guarantee bank deposits.

Zhang Jian-hua said that the tightening of global economic and financial situation, so that the maintenance of financial stability in China is facing a more complex external environment and more challenges, in the absence of a system to protect depositors, the depositors of financial institutions operating risk of sudden sensitivity More easily evolve into social instability. Should be introduced as soon as bank deposit insurance mechanism, to give salvage its disposal and the risk of a number of functions, such as, for possible financial risks and ensure timely disposal.

The latest of these remarks, the latest release Everbright Securities Investment Report pointed out that the initiatives that the country will no longer be hidden to provide security for the bank, but by law to provide explicit guarantees; in the long term conducive to the development of the banking industry norms, but In the short term to pay more than the bank's insurance will bring financial pressure on some small banks will face a shortage of capital adequacy ratio.