The insufficiency of the overt deposit insurance system：reflections on the establishment of the deposit insurance system in our country

The overt deposit insurance system is widely developed all over the world. Differences of the deposit insurance system exist between countries. The deposit insurance system has close relation with such factors as economic and financial environment of one country. As for the effectiveness of the design of the deposit insurance system, we should consider the influence of the deposit insurance system on market restraint, stability of banks, financial development and solution to the financial crisis as well as the system and contracting environment of one country. It is dangerous to adopt the overt deposit system in the long run without appraising and improving the information and supervising environment.