Zhou Kunping: Deposit Insurance for Banks Does More Good Than Harm

The deposit insurance act comes out formally today. The state council announced that the deposit insurance system will take effect on May 1, to set the upper limit of deposit insurance claims in 500000 Yuan.

The deputy general manager of Bank of communications financial strategic planning department Zhou Kunping said to Netease financial that the official document and exposure draft are basically the same, it has good and bad effect on bank, but good is bigger than bad, the malpractice is the moral risk, and profit is to maintain financial stability.

He thinks, for depositors, on the one hand, there is a risk guarantee; on the other hand it will also greatly enhance the depositor’s risk awareness.