Premium Rate Patterns of Deposit Insurance System: Foreign Practice and Implications for China

Since the United States at first established Deposit Insurance System (DIS) in 1934, over 100 countries have already built up the system so far according to their own national conditions. Although China didn’t implement DIS yet, preparation works have been in progress. In the ‘China Financial Stability Report 2012’, China has claimed that launch timing of DIS was basically mature and relative departments would actively enact “Deposit Insurance Actâ€. In 2013, DIS turned to be one of the key points in fiscal reform and priority among priorities in the government works. Premium rate patterns consist of single rate system and differential rate system. Most of countries and regions select single rate system in the beginning and gradually transit to differential rate system. This paper analyses two different rate patterns in each typical countries and puts forward suitable rate pattern for China after fully considering current state of China’s banking industry