What is the function of deposit insurance system?

First, the implementation of compulsory deposit insurance is actually a compulsory protection for the development of the banking industry.

The current situation of China's financial industry is that the operating mechanism of state-owned commercial banks has not been completely changed, the asset-liability structure is unreasonable, and the ability to resist risks is poor. Under the background of imperfect financial market development and outdated financial supervision methods, the implementation of compulsory deposit insurance is actually a compulsory protection for the development of the banking industry.

Second, the establishment of deposit insurance system is conducive to innovating traditional concepts and raising public awareness of risks.

For a long time, under the planned economy system, China's bank savings deposit has not only no risk, but also considerable income, which has always been the first choice for people to invest.

Three, the establishment of deposit insurance system is also conducive to strengthening the supervision of the central bank, reducing the burden on the central bank.

The purpose of deposit insurance is to require deposit insurance institutions to supervise the daily activities of banks, regularly check the financial status of banks and review the statistical statements and accounts submitted by them.

Extended data:

The advantages of explicit deposit insurance system are:

1. Define the amount of compensation for depositors in case of bank failure, and stabilize the confidence of depositors;

2. Establish specialized agencies to deal with problematic banks quickly and effectively in a clear way and save disposal costs;

3. Accumulate funds in advance to pay depositors and dispose of banks;

4. Strengthen the market restraint of the banking system and clarify the responsibilities of all parties when the bank fails.

Baidu encyclopedia-deposit insurance system