Deposit Insurance and Banking Supervision in China: The Agenda Ahead

Geneva Papers on Risk and Insurance, Vol. 33, No. 3, pp. 547-565, 2008

Posted: 12 Sep 2008

Date Written: September 1, 2008

Abstract

This paper proposes that the establishment of supervisory function in China's deposit insurance is an urgent task of the country's financial regulators and it becomes an indispensable component in a sound financial supervisory system. An important supplement to the banking regulatory system and aiming to protect depositors against financial losses caused by bankruptcy of financial institutions through a risk compensation mechanism, the implementation of supervisory function in deposit insurance helps to fulfill supervisory goals in the banking industry. Meanwhile, we argue that the supervisory responsibilities of the prospective deposit insurance agency in China are to some extent different from those of the existing banking regulatory institution, and therefore will not cause overlap in regulation or overuse of regulatory resources.

Keywords: bank supervision, deposit insurance, financial stability, China

JEL Classification: G21, G28

Suggested Citation

Yan, Haibo and Huang, Ying, Deposit Insurance and Banking Supervision in China: The Agenda Ahead (September 1, 2008). Geneva Papers on Risk and Insurance, Vol. 33, No. 3, pp. 547-565, 2008, Available at SSRN: https://ssrn.com/abstract=1266275

Haibo Yan

People's Bank of China

32 Chengfang Street,West District
People's Bank of China
Beijing
China

No contact information is available for Ying Huang

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