China is holding one of the world’s largest cash repositories, with around $19 trillion in bank deposits. CCTV’s Zhang Jian reported on changes coming to China’s banks.
China banks to be required to carry deposit insuranceChina is holding one of the world's largest cash repositories, with around $19 trillion in bank deposits. CCTV's Zhang Jian reported on changes coming to China's banks.
- The system will require all financial institutions in the country to pay insurance premiums into a fund which will reimburse savers if their banks go bankrupt.
- China’s big banks have advantages over smaller banks in soliciting deposits, because depositors believe they have an implicit state guarantee.
- The reimbursement cap will be 500 thousand yuan, around $81,000, that will cover around 99.6 percent of all accounts in China’s banking system, according to the People’s Bank of China.
Leland Miller from China Beige Book International on China’s deposit insurance
For more on China’s deposit insurance, CCTV America interviewed Leland Miller, the president of China Beige Book International.