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Deposit Insurance

Frequently asked questions about deposit insurance (FAQ)

1. What is deposit insurance?

Deposit insurance, also known as deposit guarantee, means that the state provides a clear legal guarantee for public deposits through legislation so as to promote the healthy development of the banking industry.


2. What is the deposit insurance coverage?

According to Deposit Insurance Regulations, deposit insurance covers all banking financial institutions that collect deposits, including commercial banks, rural cooperative banks and rural credit cooperatives established in China.

Insured deposit includes RMB deposit and foreign currency deposit collected by insurance institutions. However, there are exceptions for interbank deposit of financial institutions, deposit of senior managers of insurance institutions, and other deposits that are not insured by deposit insurance fund management institutions.


3. What is the compensation limit?

According to Deposit Insurance Regulations, deposit insurance shall be paid in a limited amount with a maximum compensation limit of RMB 500,000. If the consolidated amount of the deposit principal and interest of the same depositor in all insured deposit accounts of the same insurance institution is within the maximum compensation limit, it shall be paid in full. However, the deposit of more than RMB 500,000 is not insured. Even if individual banks have problems, the rights and interests of depositors can be fully protected by using market means. Deposit insurance fund is used to promote the sound banks in acquiring the problematic banks and transferring the deposits of the problematic banks to the sound banks. This can also fully protect the rights and interests of depositors.


4. Do depositors need to pay insurance fees?

As a part of the national financial safety net, deposit insurance comes mainly from the insurance fees paid by financial institutions according to the regulations. The purpose of collecting insurance fees is to strengthen market controls on financial institutions and promote the bank's prudent operation and sound development.


5. Under what circumstances should compensation be made?

According to Deposit Insurance Regulations, the depositor has the right to request the deposit insurance fund management institution to use the deposit insurance fund to compensate the insured deposit in the following circumstances: The deposit insurance fund management institution acts as a takeover organization of the insurance institution; the deposit insurance fund management institution carries out the liquidation of the defunct insurance institution; the people's court rules and accepts the bankruptcy application of the insurance institution; other circumstances shall be approved by the State Council. In order to ensure the timeliness of compensation and fully protect the rights and interests of depositors, the regulations stipulate that the deposit insurance fund management institution shall pay the deposits in full within seven working days from the date of the abovementioned circumstances.


6. When will the regulations be implemented?

Deposit Insurance Regulations has come into force from May 1, 2015.