Clear up Vagueness Surrounding Proposal for Deposit Insurance System

Efforts to create a deposit insurance mechanism for banks in China have dragged on for more than 20 years before reaching a breakthrough on November 30, when the State Council released a draft plan so the public could comment.

Research into building the system started in 1993. Over the years, the central government has repeatedly said that a deposit insurance system should be in place, but implementation has been slow. That makes the release of the draft plan extraordinary progress, but a few points are vague and should be clarified.