Thoughts on Establishing Explicit Deposit Insurance System for China’s Rural Banks

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Abstract


Rural banks in China begin to rise gradually all over the country, promoting the healthy development of agriculture, farmer, rural areas and the small and micro enterprises. Due to low credibility, difficulties in absorbing deposits, lower profitability, and system defects, rural banks in China have been developing at a slow pace. To promote the healthy and steady development of China's rural banks, the bank deposit insurance system for rural banks should be established quickly to enhance its credibility, reduce risk, making rural banks serve the agriculture, farmer, rural areas and the small and micro enterprises in a high quality.


Keywords


Rural banks; agriculture, farmer, rural areas; small and micro enterprises; explicit deposit insurance system

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