The People’s Bank of China (PBOC) has launched a new depository insurance fund company.
According to official industrial and commercial registration data on 24 May PBOC established the Depository Insurance Fund Management Limited Liability Company (存款保险基金管理有限责任公司) with registered capital of 10 billion yuan.
PBOC is the sole investor in Depository Insurance Fund, whose legal person and chief director is Huang Xiaolong (黄晓龙), vice-head of PBOC’s financial stability department.
The official business scope of Depository Insurance encompasses “equity, debt and fund investments; the lawful management of assets in relation to depository insurance funds; direct or entrusted acquisitions; the operation, management and disposal of assets; the lawful handling of business in relation to depository insurance; asset appraisal, and other operations as approved by the relevant authorities of the state.”
Data from PBOC’s financial stability department indicates that as of 2018 4017 deposit-taking banking sector financial institutions in China had handled insurance procedures in accordance with regulations. providing a high level of protection to depositors.
According to PBOC the protection threshold of 500,000 yuan can provide full protection to 99.5% of depositors with insured institutions, serving to ensure the steady operation of the Chinese banking system.