China’s central bank, the People’s Bank of China (PBOC) on Sunday announced draft rules for a long-awaited insurance scheme for bank deposits, in order to protect savers’ money as banks become more liberalized.

When it goes into effect as early as January, the deposit-insurance system would insure accounts up to Rmb500,000 (USD81,000).

The announcement of the draft rules came after senior officials from the central bank’s branches all over China attended a conference in Beijing to discuss the implementing rules of the deposit-insurance plan.

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The deposit insurance system plan is part of a broader liberalization of economic policies that included widening the trading band for the closely controlled yuan and permitting more stock investment in China by foreigners, the WSJ reported.

As of the end of October, China’s bank deposits totaled Rmb112tr (USD18.21tr), one of the largest in the world. – BusinessNewsAsia.com

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