18 August 2019

China to roll out deposit insurance in 2014, paper says

China is expected to launch a deposit insurance system this year, paving the way for full interest rate liberalization, the Shanghai Securities News reported Tuesday, citing central bank governor Zhou Xiaochuan {周小川}. Zhou did not provide further details. The paper cited sources as saying the system will have a compulsory insurance mechanism and insurance claims could cover more than 99 percent of savings accounts. China might also vary premiums based on each bank’s risk level as a way to curb financial institutions’ blind expansion and to promote their healthy development, the report said.

– Contact HKEJ at [email protected]



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