Deposit insurance system is a kind of financial security system, which refers to an insurance institution composed of qualified deposit financial institutions. As the insured, all deposit institutions pay insurance premiums to them according to a certain proportion of deposits, establish deposit insurance reserves, and when member institutions have business crisis or face bankruptcy, deposit insurance institutions provide financial assistance or directly pay part or all of their deposits to depositors, thus protecting depositors' interests, maintaining bank credit and stabilizing financial order.
[Edit this paragraph] The rise and development of deposit insurance system
The real deposit insurance system began in the United States in the 1930s. At that time, in order to save the banking system on the verge of collapse under the impact of the economic crisis, the US Congress passed the glass-steagall act on 1933, and the Federal Deposit Insurance Corporation (FDIC) was established on 1934 as a government agency for bank deposit insurance, and began to implement deposit insurance to avoid bank runs and protect the banking system. At present, the longest-running and most influential federal deposit insurance system in the United States was formally implemented on June 1 934+1October1. Since 1950s, with the constant change and development of economic situation, financial system and financial innovation, the deposit insurance system in the United States has been continuously improved, especially in financial supervision and inspection, financial risk control and early warning. The Federal Deposit Insurance Corporation has made a lot of fruitful explorations and achieved good results, thus establishing its position as one of the "Big Three" in American financial supervision, and the deposit insurance system has also become an important part of American financial system and financial management. Friedman M, a famous American economist and monetarist leader, spoke highly of the American deposit insurance system: "The establishment of a federal deposit insurance system for bank deposits is the most important event in the American monetary field since 1933."
Since the mid-1960s, with the increasing liberalization and internationalization of the financial industry, financial risks have increased significantly. Most western developed countries have introduced the deposit insurance system into their financial systems, and some developing countries and regions, such as Taiwan Province Province, Indian and Colombian, have also made beneficial attempts in this regard.
At present, the internationally accepted theory is to divide deposit insurance into implicit deposit insurance and explicit deposit insurance.
1, implicit deposit insurance system is more common in developing countries or banking systems dominated by state-owned banks, which means that the state has not made institutional arrangements for deposit insurance, but when banks fail, the government will take some form to protect the interests of depositors, thus forming public expectations for deposit protection.
2. Explicit deposit insurance system means that the state clearly stipulates the establishment of deposit insurance elements and the disposal of problematic institutions in the form of law. The advantages of explicit deposit insurance system are:
1) Clarify the amount of compensation paid by depositors in case of bank failure, and stabilize the confidence of depositors.
2) Establish special institutions to deal with the problem banks quickly, effectively and clearly, and save the disposal cost.
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 in case of bank failure.
In view of the obvious role of FDIC in stabilizing the American financial system and protecting the interests of depositors, especially since the 1980s, a series of banking crises and currency crises have occurred worldwide, which has prompted many governments to establish or improve the existing deposit insurance system on the basis of learning from foreign deposit insurance systems and combining their own reality. Especially in recent years, explicit deposit insurance has developed rapidly in the world, as shown in the following figure:
78 economies around the world have established various forms of deposit insurance systems. Although they were established at different times, 74 economies have clearly stipulated deposit protection in laws or regulations (that is, they have established a clear deposit insurance system). Some people even regard the establishment of deposit insurance system as an indispensable part of modern financial system. In fact, the number of countries and regions that have established explicit deposit insurance system has increased more than six times in the past 30 years, from 1974 to 12 to 74 in 2003. The establishment of explicit deposit insurance system has become a major feature of the financial structure reform suggestions put forward by experts to developing countries and regions (Garcia, 2003). In addition, compulsory insurance at the national level has become the mainstream. Almost all countries have established deposit insurance at the national level from the beginning. In addition, in developed and developing countries, it has become increasingly mainstream to force all deposit institutions to join the insurance system.
[Edit this paragraph] Organizational form of deposit insurance system
Judging from the countries that currently implement this system, there are mainly three organizational forms:
1, established by governments, such as the United States, Britain and Canada.
2. Established by the government and banking departments, such as Japan, Belgium and the Netherlands.
3. It was jointly established by banks with the support of the government, such as Germany.
At present, the system has not been established in China, but financial risks are plaguing commercial banks in China, the interests of depositors are being threatened, and the credibility of banks is being challenged as never before. Therefore, while improving the supervision level of the central bank, it is very important to establish a deposit insurance system in China, especially for deposits absorbed by small and medium-sized financial institutions, to protect the interests of depositors of families and small and medium-sized enterprises, to stabilize the financial system and to enhance depositors' confidence in banks.
[Edit this paragraph] Basic characteristics of deposit insurance system
1, compensation for mutual assistance
On the one hand, the relationship between deposit insurance subjects is paid, that is, the insurer can only get financial assistance after the insured bank pays the insurance premium according to the regulations, or the depositor can only get compensation when it goes bankrupt; On the other hand, it is mutual assistance. In other words, deposit insurance is realized through the mutual assistance of a number of insured banks. If only a few banks are insured, the insurance fund is small in scale and it is difficult to bear the liability for compensation to depositors when banks go bankrupt.
2. Time limit.
Deposit insurance only compensates for bank deposits closed during the insurance period, while bank deposits that have not participated in deposit insurance or have terminated insurance relations are generally not protected.
3. Profits and losses as a result
Deposit insurance is an economic guarantee provided by insurance institutions to depositors. Once the insured bank goes bankrupt, depositors have to claim compensation from the insurer, and the result may be quite different from the insurance premium charged to the insured bank. Therefore, the deposit insurance company must accurately calculate the reasonable guarantee rate through scientific actuarial rules, so that the deposit insurance company can bear the liability for deposit compensation.
4. Institutional monopoly
Whether it is official, private or joint deposit insurance, it is different from the service of commercial guarantee companies. The purpose of its operation is not to make a profit, but to establish a guarantee mechanism through deposit guarantee and improve depositors' confidence in the banking industry. Therefore, deposit insurance institutions are generally monopolistic.
[Edit this paragraph] The role of deposit insurance system
1. Protect the interests of depositors and enhance public confidence in the banking system. If the deposit insurance system is established, when the bank implementing the system is unable to pay the depositors' deposits due to poor cash flow or bankruptcy, according to the terms of the insurance contract, the insured bank can obtain compensation or financial assistance from the deposit insurance institution, or be accepted or merged, and the depositors' deposit losses will be minimized as much as possible, effectively protecting the depositors' interests. Although the deposit insurance system is a remedial measure afterwards, its function is also reflected in advance. When the public knows that the bank has implemented the system, even if the bank really has problems, they will get corresponding compensation, which gives them a sense of security psychologically, thus effectively reducing the spread of panic and further reducing the run on the banking system.
2. It can effectively improve the stability of the financial system and maintain the normal financial order. As the deposit insurance institutions are responsible for guaranteeing the payment to the problem banks, they will inevitably supervise and manage the daily business activities of the insured banks, find hidden dangers, make timely suggestions and early warnings, and ensure the stable operation of all banks, which actually adds a financial safety net. At the same time, due to the positive effect of this system on public psychology, it can also effectively prevent the occurrence and spread of bank runs, thus promoting the stability of the financial system.
3. Promote moderate competition in the banking industry and provide high-quality and low-cost services to the public. Because of its size and strength, large banks are often in an advantage in absorbing deposits, while small and medium-sized banks are in a disadvantage position, which is easy to form a monopoly situation for large banks. Monopoly is not conducive to the interests of consumers, and the interests of the public will be less than those in the state of perfect competition. Deposit insurance system is one of the effective ways to protect small and medium-sized banks and promote fair competition. Can let depositors form a kind of * * * knowledge, no matter whether the deposit is deposited in a big bank or a small bank, the degree of protection of the system is the same. Therefore, the quality of service provided will become the main factor for customers to choose deposit banks.
4. Deposit insurance institutions can save troubled banks by providing guarantees, subsidies or financing support, or encourage them to be merged by powerful banks, thus reducing social impact and contributing to social stability.
[Edit this paragraph] Advantages and disadvantages of deposit insurance system
1, the positive impact of deposit insurance system
1) is conducive to preventing financial risks and stabilizing a country's financial system. Under the background of economic and financial globalization, the international financial market turmoil has intensified and financial turmoil has occurred frequently. For example,194 Mexican financial crisis,195 British Bahrain Bank closed down,196 Japanese Sakamoto Bank closed down,197 Asian financial turmoil that swept through Southeast Asia, Japan and South Korea, and Japanese insurance companies closed down frequently recently, which not only seriously affected the normal operation of the domestic economy and social stability, but also brought to the international financial market. These countries have paid a heavy price for solving these financial problems. Although there is no large-scale systematic financial turmoil in China at present, with the acceleration of financial marketization and internationalization, financial innovative products have gradually increased, and small and medium-sized commercial banks have been established. Under the condition that the internal control system of commercial banks is not perfect, the risks of banks themselves are gradually increasing. Preventing risks and stabilizing finance can only "nip in the bud". International experience shows that the establishment of deposit insurance system is one of the feasible options to prevent financial risks.
2) It is conducive to protecting the interests of depositors and improving the overall credit of banks. As a credit intermediary bank, its basic characteristics are high risk and instability, that is, most of the bank's funds are absorbed by institutional and personal deposits in the form of liabilities, and its own funds only account for a small part of the total capital. When debts cannot be paid off on time due to poor management or other factors, it is easy to trigger a bank credit crisis. 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.
3) It 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. Under the condition of socialist market economy, enterprise bankruptcy is not only accepted by the public in theory, but also implemented in practice, so the potential risks of commercial banks as a special commodity of money should also be accepted by the public.
4) It is conducive to strengthening the supervision of the central bank and reducing its burden. The purpose of deposit insurance, on the one hand, is to fulfill the liability for compensation under important circumstances, on the other hand, it is more important to ensure the stability of the whole financial system. This requires deposit insurance institutions to supervise the daily activities of banks, and regularly check the financial status of banks and review the statistical statements and accounts submitted by them. When a bank is mismanaged or engaged in illegal and high-risk business, the deposit insurance institution can give a warning, order rectification, help the bank tide over the difficulties, or facilitate the merger and acquisition of other banks, thus realizing the central bank's regulatory intention.
2. Negative effects of deposit insurance system.
1) The fundamental problem of deposit insurance system is that it may induce moral hazard. On the one hand, the existence of deposit insurance system makes depositors' risk awareness decline, especially after the realization of interest rate marketization, they may deposit their money in banks that are willing to pay the highest deposit interest regardless of the bank's operating risks; On the other hand, the risk restraint mechanism of commercial banks will also be weakened, and they may speculate excessively in pursuit of high profits in their business activities. In addition, there are special problems in the establishment of deposit insurance system in China: the four major state-owned banks are backed by the government and enjoy the insurance provided by the government free of charge. In order to save operating costs, they are obviously reluctant to join the deposit insurance system. If the wholly state-owned commercial banks are not included in this system, due to the small amount and narrow scope of insurance funds, it is difficult to ensure that depositors will be paid when the bank funds are greatly lost.
2) Encourage banks to take risks. In other words, the deposit insurance system stimulates banks to take more risks and encourages them to take risks. Because banks know that once they are in trouble, deposit insurance institutions will save them. Especially when a bank is in crisis and does not fail, the owner will put all the eggs and the money of the deposit insurance institution in one basket, because all the risks will be borne by the insurer. In this way, those financial institutions with weak financial strength and high risks will gain practical benefits, while banks with stable operations will be damaged in the competition, thus injecting unstable factors into the whole financial system and increasing the operational risks of the banking system. This is contrary to the original intention of establishing a deposit insurance system.