"your savings are protected." on 7 november, the central bank announced that deposit insurance markers would be activated in 11 municipalities (countys) in hebei province, in nicho county, shanxi province, in pyong city, liaoning province, and in tieling city, liaoning province. As of 28 november, 4025 financial institutions covered by deposit insurance will be unified。
Deposit insurance is a basic institutional arrangement for the financial sector that is common in all countries, with more than 140 countries and territories in the world having deposit insurance systems in place. On 1 may 2015, we introduced the deposit insurance regulations, which specify that deposit insurance is subject to a ceiling of 500,000 yuan。
Does this mean that the portion of deposits above $500,000 is not guaranteed? According to regulators, the introduction of a limit does not mean that deposits above the limit are not secured. Deposit insurance provides full protection to over 99 per cent of depositors in all insured institutions。
Public information indicates that the limited liability company managed by the deposit insurance fund was established in 2019 with a registered capital of $10 billion, with the central bank being the sole contributor. “in accordance with the provisions of the deposit insurance ordinance, deposit insurance funds may be used to repay the insured deposit to the depositor, or to provide guarantees, allocation of loss or financial support to other eligible insured institutions. This is a presentation by the above-mentioned regulator。
For more than five years, the deposit insurance system has been implemented smoothly, with small and medium-sized banks that had been the subject of market concerns about the risk of “crowding” and deposits having risen steadily. According to one monitoring data, since the introduction of the deposit insurance ordinance, the pattern of deposits in large, medium and small banks has remained generally stable and the market share of small and medium-sized banks has risen steadily. By the end of september 2020, the market share of small and medium-sized bank deposits had increased by 2. 5 percentage points compared with the deposit insurance regulations, and public confidence in small and medium-sized banks had increased。
The use of deposit insurance markers is an important element in the implementation of deposit insurance systems and is common international practice. The central bank stated that the deposit insurance labels were visual, visible and credible, and helped to make it easier for a large number of depositors to identify the financial institutions participating in deposit insurance and to better understand the rights and interests of their deposits under the state deposit insurance system。
What's the deposit insurance sign look like? It is understood that the logo, which is designed centrally by the people's bank of china, includes the insurance image scheme, the english language of the “deposit insurance”, the words “the foreign currency deposits absorbed by the institution are protected in accordance with the deposit insurance regulations” and the words “authorized for use by the people's bank of china”. The deposit insurance mark is an integral whole。
The main color of the deposit insurance label scheme is green, the main subject of the scheme is the white han type “group”, which is meant to protect public depositors, and it also forms the tree pattern, the three tree crowns of which symbolize the three main functions of deposit insurance: protection of depositors, differential rates and early correction, and risk disposal. The contours of the pattern are safe, protective and trustworthy。
Financial institutions participating in deposit insurance are required to display deposit insurance signs in prominent places at the entrances to each of the country's business networks, ensuring that depositors entering the network can easily identify the financial institutions participating in deposit insurance。
Newkyo's shell financial reporter
