Arab Today, arab today china deposit insurance steps forward for financial reform
Last Updated : GMT 21:53:08
Arab Today, arab today
Arab Today, arab today

China deposit insurance steps forward for financial reform

Arab Today, arab today

Arab Today, arab today China deposit insurance steps forward for financial reform

People's Bank of China (PBOC)
Beijing - XINHUA

 China's proposed bank deposit insurance scheme will be an important development for further financial reforms, reducing financial risks and rebalancing the economy, said Fitch in its latest report.
"This (the deposit insurance scheme) would ultimately translate into greater economic rebalancing as well as a potentially lower propensity for the state to support non-systemically important banks," Fitch said.
According to the People's Bank of China (PBOC), the proposed insurance scheme will cover a maximum of 500,000 yuan (81,566 U.S.dollars) per deposit account (yuan and foreign currency), allowing for full insurance of 99.6 percent of accounts or an estimated 46 percent of total deposits.
Deposits at the China branches of foreign institutions, and Chinese banks' offshore deposits, will not be covered. Neither will interbank deposits of other institutions.
Fitch said that the deposit insurance will lead to further financial reforms and potentially significant changes to China's banking system as well as macroeconomic effects.
Introducing a deposit insurance scheme in conjunction with a resolution framework could mean the state may lower the likelihood of support for less systemically important banks, thus mitigating inappropriate risk-taking, said the report.
Furthermore, Fitch views insurance as an important pre-requisite for full deposit rate liberalization - a necessary reform for more market-determined pricing of capital.
On Sunday, the PBOC published draft rules for the deposit insurance system and started soliciting public opinion. Well-informed sources told Xinhua that the scheme will likely be implemented as early as the beginning of 2015.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china deposit insurance steps forward for financial reform Arab Today, arab today china deposit insurance steps forward for financial reform

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china deposit insurance steps forward for financial reform Arab Today, arab today china deposit insurance steps forward for financial reform

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday