Bank deposits can be insured Insurance Tips

Category: Insurance tips Release Date: 2006-08-01

┿Yan Zhenhua

Not long ago, with the market economic order, the national regulation, the PBOC announced the "strike hard evasion of financial debt behavior." It has been revealed, was dodging legitimate creditors, financial debt is mainly state-owned commercial banks. In the five major commercial banks of the debtors were state-owned enterprises accounted for nearly 7 into a total evasion of loan principal and interest reached 127.3 billion yuan.

According to industry analysts, China currently has more than 100 Chinese-funded banks, nearly 200 foreign-funded banks, as well as tens of thousands of rural credit cooperatives operating deposits, some of which chaotic management, poorly managed financial institutions in bankruptcy only a matter of time before. In fact, some financial institutions have in recent years, China's bankruptcy, such as "middle peasants letter", "Hainan Development Bank", "Guangdong International Trust" and so on.

Banks at risk, savings deposits of residents, of course no exception. Although interest rates have continued to drop in recent years, many people began to invest spare cash in their hands as stocks, bonds, funds and other investment areas in which savings are presented streaming "aggravated" trend, but the traditional way still can not be ignored, now more than 7 trillion yuan savings deposits of residents is proof.

As a financial partner, the insurance industry is facing a population of bank deposits can be done?

Relevant experts recently pointed out that the deposit insurance system to the establishment of the time.

The so-called system of deposit insurance in banks and other financial institutions bankruptcy assured depositors receive the necessary deposits as a mechanism for payment. As we all know, banks operating conditions are generally difficult to accurately understand the depositor, that exist between banks and depositors to asymmetric information. This situation is likely to enable banks to take depositors money to high-risk investments moral hazard behavior occurs. The deposit can not distinguish good and bad, once a bank problems, including the good bank, including all banks will be likely to face depositor runs, resulting in systemic financial crisis.
The establishment of a deposit insurance system, in protecting the interests of depositors, it is also able to maintain financial stability, to prevent individual banks from failure caused by systemic financial crisis. In addition, from increasing public confidence in financial institutions to ensure that banks and orderly competition and reduce government intervention in problem banks point of view, the establishment of this system is also very necessary.

At present, for the establishment of a deposit insurance system has two views.

The Central University of Finance and Professor Hao Yansu represented by the point of view, purely from a security point of view, the current deposit insurance system in our country there is no problem. The government has commissioned a large commercial insurance company, or the deposit insurance funds to manage the deposit insurance fund could be part of the government financing, commercial banks to pay part of the common component.

This view also believe that the way through the payment of insurance premiums to guard against the risk of the banks would be happy to do, because with the commercial bank's risk awareness, they are the basis of the statutory reserve is often a certain amount to establish a separate reserve fund, if the reserve ratio is too high and profits are not conducive to the improvement of operating funds; other hand, the Government also hopes that through market means to resolve financial risks.

An alternative to Foreign Economic and Trade University, Institute of Finance Dr. Ding Zhijie, represented view was that, at present the majority of banks in non-performing assets of state-owned commercial banks, in theory, is insolvent. Risk in the financial system has not been resolved, even if the establishment of a deposit insurance system, nor can governments and central banks of bad assets from troubled by the problem. For the huge non-performing assets, the deposit insurance fund I am afraid of no avail.

At present the official publication of the state-owned commercial banks non-performing loan ratio of around 25%, according to the stringent requirements of the People's Bank the next few years, the proportion of non-performing loans of state-owned banks should be an annual average reduction of 2 to 3 percentage points. Dr. Ting worried that have taken place close to the bank are case handling, there is no uniform bankruptcy rules, deposit insurance system for those who may be insolvent, the low credibility of the blind expansion of financial institutions to compete for deposits, the provision of facilities. In addition, because different types of bank failure risk difference between the large, the difference should be reflected in the rates on, but how to set rates do not have to refer to learn from experience. State-owned commercial banks had a special status and the number of outstanding issues, the Government is difficult to walk away, you can withhold a deposit insurance system. Even if established, should also be for different types of institutions to take a different form of deposit insurance system, such as the joint-stock commercial banks can follow the market model and establish a mandatory deposit insurance system. Other types of banks, such as city commercial banks, rural credit cooperatives, etc., may on a voluntary basis, if necessary, in support of the Government with industry associations set up under the Deposit Protection Commission, member agencies provide a common security deposits.

There are also experts pointed out that the financial regulatory authorities in determining whether the authority and independence of the deposit insurance fund to ensure the smooth running of the important factors, but 2:00 is our lack. Therefore, the deposit insurance system in China is difficult in one step.

In any case, deposit insurance, the subject has attracted attention, I believe that through constant discuss the conclusions will come out soon.

Major banks from the 7 trillion yuan in personal financial assets, saw a huge demand for personal financial services, many banks have previous business development of a single savings to the traditional savings and intermediary business, personal consumer credit and personal financial services and many other businesses, They are eager to seize the opportunity to expand the retail business to open up a new world.
Banks eager to insurance can miss this chance?