School of Law

Research Student: Ningyao Ye

The deposit insurance system after the global financial crisis: A comparative study between UK, US and China

Photo of Ningyao Ye

The banking industry has played an essential role in the modern financial system, however, the banking industry also could be high-risk for the whole financial system, the bankruptcy of one single bank may cause a ‘domino effect’ in whole banking market. In the 20th century, the globalisation of finance becomes the trend for the modern economy. Therefore, the management of bank and the method for financial crisis becomes a common issue for financial authorities around the world. In the Great Depression, the crisis caused a lot of banks to close which significantly harmed depositors’ interest and confidence. In order to keep stability of banking market, the US officially established the deposit insurance system in 1933. In 2008, Federal Deposit Insurance Corporation (FDIC) performed its main functions remarkably to against bank run and keep stability of banking market. As for the UK, the Financial Services Compensation Scheme (FSCS) was set up under the Financial Services and Markets Act 2000 (FSMA).

It is essential to build deposit insurance in China, because China has a giant banking industry. Although China implemented the Regulations on Deposit Insurance om May 1, 2015, it does not constitute an integrated legal system for deposit insurance. On one hand, with the confirmation of the importance of the deposit insurance system, China should take the policy into consideration to follow the global trend. On the other hand, circumstances have been changed a lot in China. For instance, China followed the commitment in WTO to open capital markets for foreign banking corporations which allowed them to provide financial services to Chinese consumers. Without integrated deposit insurance system, the potential crisis could be triggered. The establishment of deposit insurance system could further enhance banks’ reliability, protect depositors’ interests and maintain stability of banking industry. Therefore, it is obvious that the integrated deposit insurance system could make positive contribution to Chinese financial market.


I got my Bachelor’s degree from East China University of Political Science and Law, and then, I went to University of Glasgow for master degree.

LLM International Commercial Law in University of Glasgow

LLB  Intellectual Property in East China University of Political Science and Law

What are my plans once I have completed my PhD?

I would like to continue my career in academia.

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