Core Viewpoint - The article emphasizes the need to strengthen the deposit insurance system in China through market-oriented, legal, and professional risk management measures, building on the achievements of the past decade [1][3]. Group 1: Historical Context and Current Status - Since the implementation of the Deposit Insurance Regulations in 2015, the People's Bank of China has effectively managed the deposit insurance system, which has operated smoothly [1]. - The establishment of the Deposit Insurance Fund Management Company in May 2019 has enhanced the collection of premiums, risk monitoring, early correction, and prevention of bank runs [1]. - Internationally, deposit insurance systems have been established in nearly 150 countries, with 56% of these being legislated and managed by governments [2]. Group 2: Recommendations for Improvement - It is recommended to expedite the enactment of a deposit insurance law to provide a legal foundation for the system to function effectively as a financial safety net [1][3]. - The article suggests expanding the accumulation of the deposit insurance fund and enhancing the resources available for financial risk management [4][5]. Group 3: Financing Mechanisms - Various methods to strengthen the deposit insurance fund's financing mechanisms are proposed, including borrowing from the central bank, issuing bonds, investment operations, and pre-collecting premiums [6][7]. - The experience of Japan highlights the importance of having a robust backup financing mechanism to ensure liquidity during crises [6]. Group 4: Risk Management Functions - The current deposit insurance system has limitations in its risk management functions, such as inadequate information sharing and insufficient early corrective measures [8]. - The article advocates for enriching the risk management functions of deposit insurance, drawing lessons from Japan's experience in enhancing the role of deposit insurance in financial risk management [9][10]. Group 5: Future Directions - The article calls for the establishment of a comprehensive risk management framework that includes various tools for handling financial institution crises, such as takeovers, bridge institutions, and rapid compensation for depositors [10][11]. - It emphasizes the need for deposit insurance to play a central role in risk management, ensuring a collaborative approach with regulatory bodies and the central bank to create a more robust financial safety net [11].

Core Viewpoint - The ongoing discussions during the National People's Congress focus on improving the deposit insurance system and revising the People's Bank of China Law to enhance financial stability and risk management in the banking sector [1][4]. Group 1: Deposit Insurance System - Multiple representatives emphasize the need to enhance the deposit insurance fund and financial stability guarantee fund to better manage financial risks [1]. - The current Deposit Insurance Regulations face challenges such as low legal status and insufficient measures for early correction and risk disposal, particularly affecting small and medium-sized banks [1][2]. - Suggestions include establishing a dedicated deposit insurance law to clarify responsibilities and improve the risk disposal mechanism [2][3]. Group 2: Risk Monitoring and Early Correction - Recommendations include developing a risk monitoring and early warning system tailored to deposit insurance, promoting early identification and correction of financial risks [3]. - The proposal suggests enriching the conditions for triggering early correction measures, including the possibility of not insuring specific deposits to enhance the effectiveness of risk warnings [3]. Group 3: People's Bank of China Law Revision - The revision of the People's Bank of China Law is deemed necessary to address issues related to monetary policy, macro-prudential management, and financial stability in light of evolving financial landscapes [4]. - Suggestions include clarifying the central bank's responsibilities in macro credit management and enhancing support for sectors like technology finance and green finance [4]. - There are calls to improve the financial budget management system of the central bank to strengthen its financial position and sustainability [4].