Group 1 - The 28th ASEAN Plus Three (10+3) Finance Ministers and Central Bank Governors Meeting was held on May 4 in Milan, Italy, focusing on global and regional macroeconomic conditions and financial cooperation [1] - The meeting resulted in a joint statement emphasizing the need for deeper policy coordination and strengthening the regional financial safety net [1] - China announced a donation of $4 million to the AMRO China Technical Assistance Trust Fund to support macroeconomic monitoring and financial stability capacity building among regional members [1] Group 2 - The 10+3 region demonstrates strong resilience and significant growth potential, but faces complex internal and external challenges [2] - The meeting reached a consensus on establishing a rapid financing tool under the CMIM using freely usable currencies like the renminbi, marking a significant step towards diversifying the international monetary system [2] - The introduction of this financing tool expands the resources available under the Chiang Mai Initiative and highlights regional characteristics [2]

Core Viewpoint - The article emphasizes the importance of enhancing the deposit insurance system in China, particularly through the establishment of a backup financing mechanism in the new deposit insurance law, to better protect depositors and manage financial risks effectively [1][7]. Group 1: Achievements of the Deposit Insurance System - The deposit insurance system has been operational for ten years, significantly enhancing public confidence in the banking system and improving depositor protection levels [1][4]. - Over 99% of depositors are provided with full protection, which is notably higher than the international average [1][6]. - The system has played a crucial role in risk monitoring, early correction, and orderly exit of high-risk banks, thereby strengthening the stability of China's financial system [1][4]. Group 2: Recommendations for Improvement - Experts suggest that the deposit insurance law should be elevated to a higher legal status to provide a more robust framework for the operation of the deposit insurance system [7][8]. - There is a call to enhance the functions of deposit insurance, including the development of early correction and risk disposal measures, and to enrich the deposit insurance fund [2][7]. - The establishment of a backup financing mechanism is recommended to ensure the deposit insurance fund can respond effectively to external financial shocks [7][8]. Group 3: Case Study of Baoshang Bank - The risk disposal of Baoshang Bank is highlighted as a landmark case, demonstrating the effectiveness of the deposit insurance system in protecting depositors' interests during the bank's bankruptcy proceedings [3][4]. - The case marked a significant breakthrough in the market exit of commercial banks, showcasing a successful model for risk management and resolution [4][6]. Group 4: Future Directions - The People's Bank of China emphasizes the need to leverage technology to enhance the effectiveness of the deposit insurance system and to engage in international cooperation for better financial governance [2][6]. - Experts advocate for continuous learning from risk disposal experiences to improve the financial system's resilience and to refine the backup funding sources for the deposit insurance fund [8].

Core Viewpoint - The discussion at the expert seminar organized by the People's Bank of China focused on enhancing the deposit insurance system to ensure the safety of deposits and the stability of banks, reflecting on nearly ten years of experience since the implementation of the Deposit Insurance Regulations in 2015 [1][2]. Group 1: Deposit Insurance System Overview - The deposit insurance system has provided a safety net for depositors, with a maximum compensation limit of 500,000 yuan, ensuring full protection for over 99% of depositors [2]. - The system has actively performed core functions such as risk monitoring, prevention of bank runs, differentiated premium rates, early correction, and risk disposal, thereby strengthening public confidence in the banking system [2][3]. Group 2: Impact on Financial Stability - The deposit insurance system has played a crucial role in maintaining the stability and fairness of the Chinese financial industry, benefiting both small and large banks equally [4]. - Since the implementation of the deposit insurance system, the deposit structure among large, medium, and small banks has remained stable, with an increasing share of deposits in small banks [4]. Group 3: Early Correction and Risk Management - The deposit insurance fund management has been effective in stabilizing public confidence, with the People's Bank of China managing the fund and enhancing its risk monitoring and early correction capabilities [3][5]. - As of the end of 2024, there are 3,761 insured institutions under the deposit insurance scheme, with risk warnings and early correction measures applied to 1,600 institutions [5]. Group 4: Future Enhancements - Experts suggested expanding the funding sources for the deposit insurance fund and improving the efficiency of fund utilization while ensuring safety [7]. - There is a call for enhancing the legal framework surrounding the deposit insurance system, including revisions to relevant laws to strengthen its foundation [7]. - The importance of technology and international cooperation in enhancing the effectiveness of the deposit insurance system was emphasized [7].