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What form is the use of deposit insurance fund limited to?
I will answer your question as follows, hoping to help you and help you understand more. The use of deposit insurance funds should follow the principles of safety, liquidity, preservation and appreciation, and be limited to the following forms: ① deposited in the People's Bank of China; (2) Investing in high-grade bonds such as government bonds, central bank bills and financial bonds with high credit ratings; ③ Other forms of fund utilization approved by the State Council.

Deposit insurance fund refers to a special fund which is made up of contributions from the state and the banking industry, premiums and investment income accumulated in the process of deposit insurance operation, and is used by deposit insurers to assume insurance responsibilities when the insured bank has operational crisis.

According to China's Deposit Insurance Regulations, all deposit-taking banking financial institutions, including commercial banks (including wholly foreign-owned banks and Sino-foreign joint venture banks), rural cooperative banks and rural credit cooperatives, should take out deposit insurance. At the same time, referring to national practice, deposits of foreign banks in China and overseas branches of Chinese banks are not covered by deposit insurance in principle. Insured deposits include both RMB deposits and foreign currency deposits. However, inter-bank deposits of financial institutions, deposits of senior managers of insurance institutions in this insurance institution and other uninsured deposits stipulated by the deposit insurance fund management institution are excluded.

About its payment limit. Deposit insurance is subject to limit payment, and the maximum payment limit is RMB 500,000. In other words, if the sum of the principal and interest of all deposit accounts of the same depositor in the same insurance institution is less than 500,000 yuan, it will be paid in full; The part exceeding 500,000 yuan shall be compensated from the liquidation property of the insurance institution. This limit is not fixed. The People's Bank of China, together with relevant departments of the State Council, can make adjustments according to economic development, changes in deposit structure, financial risks and other factors, and announce the implementation of commercial insurance after being approved by the State Council.

About its origin. The source of funds for the deposit insurance system is mainly the premiums paid by financial institutions according to regulations, and depositors do not need to pay premiums. The sources of deposit insurance funds include: ① premiums paid by insurance institutions; ② Property distributed in the liquidation of insurance institutions; (three) the income obtained by the deposit insurance fund management institution from the use of the deposit insurance fund; (4) Other legal payees.

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