Sunday, December 21, 2008

China to launch deposit insurance

China plans to launch a deposit insurance scheme next year, a move to prevent growing potential risks triggered by the global financial tsunami, a central bank official said.

"Relevant departments have submitted a draft plan of the deposit insurance scheme to the State Council. The plan is expected to be passed by next year at the latest," Zhang Jianhua, director of the central bank's research bureau, was quoted by today's Southern Metropolitan News as saying.

According to a survey by the People's Bank of China, the central bank, over 98 percent of deposit accounts are lower than 200,000 yuan ($29,197), indicating the ceiling for the deposit insurance could be no more than 200,000 yuan.

China learned that deposit insurance, is more valuable if it is limted. Exclusivity is deemed worthwhile for investors, even in a ponzi scheme!

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