On 31 March 2015, the State Council of People’s Republic of China formally released the Deposit Insurance Regulation (the Regulation), which will take effect from 1 May 2015. A draft of the Regulation was circulated on 30 November 2014 to solicit public comments and we prepared a briefing on such draft in December 2014.

Compared with the draft, there is no material change made in the formal Regulation. The key points covered in the Regulation are as follows:

  • Application of the deposit insurance system
  • Insured deposit
  • Premium rates
  • Operation of deposit insurance fund
  • Cap of compensation to depositors
  • Major obligations of the banks

For more information, please refer to our briefing – Banking regulation in China: Proposed deposit insurance system.