Core Viewpoint - The importance of deposit insurance has been highlighted in the context of recent banking crises, particularly following the collapse of Silicon Valley Bank in 2023, emphasizing the need for effective financial safety nets to protect depositors [1][2]. Group 1: Deposit Insurance Overview - Deposit insurance is a legal framework established by the state to protect public deposits, ensuring safety for amounts up to 500,000 RMB per depositor in a single institution [1]. - Globally, nearly 150 countries have implemented deposit insurance systems, often through specialized legislation and institutions to safeguard depositors' interests and maintain financial stability [2][3]. Group 2: Challenges and Lessons - Historical lessons indicate that deposit insurance cannot merely function as a "paybox" without proactive regulation, as evidenced by the failures of nearly 3,000 U.S. savings and loan institutions from 1980 to 1994, leading to significant financial losses [2]. - Countries like the U.S., Canada, Japan, and South Korea have established comprehensive legal frameworks for deposit insurance, which include risk monitoring and early corrective measures to mitigate moral hazard [3][4]. Group 3: Recommendations for Improvement - Experts suggest that deposit insurance must adopt a comprehensive approach, incorporating early corrective measures and risk monitoring to prevent regulatory complacency and moral hazard [3][5]. - The Chinese deposit insurance system has adopted a "risk minimization" model but requires enhancements in early corrective functions, similar to the established practices in the U.S. and other countries [3][4]. Group 4: Future Directions - The future of deposit insurance in China should focus on strengthening its legal framework, enhancing risk monitoring and early warning systems, and improving coordination with financial regulatory bodies [5][6]. - There is a need to expand the capabilities of deposit insurance in risk management, including the establishment of a backup financing mechanism and the development of diverse risk disposal tools [6].

Core Viewpoint - The establishment and implementation of the deposit insurance system in China over the past decade have significantly contributed to financial stability, with a focus on risk prevention, early correction, and effective risk disposal [1][8]. Group 1: Implementation and Management - Since 2015, the People's Bank of China has established a dedicated account for the deposit insurance fund, ensuring its safety through separate management [2]. - The deposit insurance system has provided full protection for over 99% of depositors with a compensation limit of 500,000 yuan [2][5]. - The system has enhanced public confidence in the banking sector, particularly benefiting small and medium-sized banks [2]. Group 2: Risk Management and Early Correction - The deposit insurance system adopts a "risk minimization" model, allowing for participation in the entire process of risk prevention, resolution, and disposal [3][4]. - Since 2016, the fee rate mechanism has transitioned to a risk-differentiated fee rate, promoting prudent management among institutions [3]. - The system has successfully prompted over 600 institutions to take corrective measures to mitigate risks [3]. Group 3: Professional Risk Disposal - The deposit insurance fund has been involved in risk disposal since 2019, successfully managing cases such as Baoshang Bank [3][5]. - The approach of "takeover + acquisition + bankruptcy liquidation" has been effectively implemented, ensuring depositor rights and maintaining market discipline [5]. - The system's design allows for a balance between protecting depositor rights and preventing moral hazard [5]. Group 4: Future Directions - There is a need to elevate the legislative status of the deposit insurance system to match its role as a pillar of the financial safety net [6]. - Future efforts will focus on expanding the accumulation of the deposit insurance fund and enhancing backup financing mechanisms [7]. - The financial stability bureau will continue to implement the deposit insurance functions and maintain systemic financial risk prevention [8].