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Premium Rate Patterns of Deposit Insurance System: Foreign Practice and Implications for China

Author

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  • Yaxi Zhang

    (School of Public Administration, Southwest Jiaotong Universtiy, Jinniu, China)

Abstract

Since the United States at first established Deposit Insurance System (DIS) in 1934, over 100 countries have already built up the system so far according to their own national conditions. Although China didn’t implement DIS yet, preparation works have been in progress. In the ‘China Financial Stability Report 2012’, China has claimed that launch timing of DIS was basically mature and relative departments would actively enact “Deposit Insurance Act†. In 2013, DIS turned to be one of the key points in fiscal reform and priority among priorities in the government works. Premium rate patterns consist of single rate system and differential rate system. Most of countries and regions select single rate system in the beginning and gradually transit to differential rate system. This paper analyses two different rate patterns in each typical countries and puts forward suitable rate pattern for China after fully considering current state of China’s banking industry

Suggested Citation

  • Yaxi Zhang, 2014. "Premium Rate Patterns of Deposit Insurance System: Foreign Practice and Implications for China," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(11), pages 454-464, November.
    • Handle: RePEc:ijr:journl:v:2:y:2014:i:11:p:454-464
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    References listed on IDEAS

    as
    1. Franklin Allen & Elena Carletti & Agnese Leonello, 2011. "Deposit insurance and risk taking," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 27(3), pages 464-478.
    2. Thomas F. Cargill & Michael M. Hutchison & Takatoshi Ito, 1996. "Deposit Guarantees And The Burst Of The Japanese Bubble Economy," Contemporary Economic Policy, Western Economic Association International, vol. 14(3), pages 41-52, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Single Rate System; Differential Rate System; Listed Banks; Premium Rate;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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