China to move to to deposit insurance

A deposit insurance program is a measure to guarantee that a certain level of deposits are guaranteed by the state even if a bank cannot pay them.
The new insurance system is also seen as laying a foundation for interest rate liberalization, as a market-oriented interest rate would force banks to lose built-in interest rate margins and could put depositors at risk.
China started to relax its cap on interest rates from last June, lifting the ceiling of deposit rates while lowering the floor on lending rates.
Currently, Chinese banks can pay up to 110 percent of the benchmark deposit rate - currently 3 percent a year - and charge loan rates as low as 70 percent of the benchmark level of 6 percent. This ensures that banks are guaranteed a margin of at least 90 basis points.
STRONGER RISK CONTROLS
In the report, the central bank also pledged to increase flexibility of the yuan's exchange rate as well as to quicken the pace of setting up a key benchmark rate for the country's money market.
It also said Chinese banks must strengthen risk control over off-balance sheet activities and defuse bad loan risks to improve the asset quality of the whole sector.
"Banks must strictly control bank credit to local government financing firms and property developers while also curbing funding flows into such sectors through the shadow banking system," said the report.
China is seeing booming growth in shadow banking activities, which channel funding to cash-starved firms such as real estate firms and debt-ridden local financing vehicles. Expansion in such activity has sparked worry that a new crop of bad loans is brewing.
Economists have said China's rigidly-controlled interest rate regime is a major factor causing a problem, as it suppresses returns on bank deposits, spurring savers to plow cash into other investments and channel more funding to banks' off-balance-sheet products.
The report also asked local governments to make a plan to contain risk to improve management of their debts.
It said that to prevent cash flow strains in the real economy, banks must raise their vigilance against possible default risks from mutual debt holdings among enterprises.

from wsj

Guo Tianyong of Central University of Finance and Economics said China was likely to make the insurance compulsory to all mainland banks, including state-controlled, joint-stock, and foreign lenders. Initially, the premium was likely to be flat, with the authorities working out risk-adjusted premiums later, he said.
UBS Securities analysts expect the insurance coverage limit to be set at between 200,000 yuan (HK$253,000) and 300,000 yuan. Barclays analysts forecast it to range from 200,000 yuan to 500,000 yuan and to protect more than 99 per cent of deposit accounts.
Outstanding deposits in banks on the mainland reached 102 trillion yuan at the end of last month, according to the central bank.
In the early years of the system, and until the insurance fund size reaches its target size of 0.5 per cent of insured deposits, the premiums payable by large banks will be 0.05 per cent of deposits, according to Barclays. For medium-sized lenders, it will be 0.08 per cent, and for small banks it will be 0.11 per cent, the British bank says

from SCMP

《中共中央關於全面深化改革若干重大問題的決定》今天全文播發。《決定》第12條提出，完善金融市場體系，落實金融監管改革措施和穩健標准，完善監管協調機制，界定中央和地方金融監管職責和風險處置責任。建立存款保險制度，完善金融機構市場化退出機制。加強金融基礎設施建設，保障金融市場安全高效運行和整體穩定。

from finance.people.cn

(四)在深化國防和軍隊改革方面:(7)《決定》提出要深化預算管理、集中收付、物資採購和軍人醫療、保險、住房保障等制度改革。

**商業保險將迎政策紅利**

多位保險專家與分析師對大智慧通訊社表示,《決定》要求建立多層次的養老保障體系,商業保險也將迎來政策上紅利支持:

其中平安證券非銀行金融分析師繳文超今天對大智慧通訊社表示,商業保險屬於市場化的保障方式,主要還是通過自發自願形式完成,過去20年我國保險行業呈現 跨越式發展,但是2010年後行業發展遭遇瓶頸。此次三中全會明確提出制定實施免稅、延期征稅的政策,預計政策落地,將會對商業保險形成巨大的促進,商業 保險將會迎來突破瓶頸後的第二個高峰。

招商證券首席分析師羅毅和繳文超持相同觀點,在《決定》發布的第一時間就在微博上表示,建議投資者抓住稅延養老險等具體措施迫近的催化劑、以及長期商業保險市場擴張的大趨勢,提前布局保險上市公司。

對於巨災保險寫入《決定》,南開大學風險管理與保險系教授朱銘來對大智慧通訊社表示,三中全會強調市場的作用,以前發生巨災都是由政府事後動員全國響應救 災,現在建立巨災保險體系,將風險防范前移,同時通過向保險公司購買服務的方式,把可以交給市場的都交給市場來操作。

對於建立存款保險制度,申銀萬國首席宏觀分析師李慧勇對大智慧通訊社表示,預計存款利率到2015年將放開,而在此之前,存款保險制度或許明年就將啟動。

對於完善農業保險制度,自從今年3月1日《農業保險條例》實施以來,除了中國人保、中華聯合保險和五大專業農業保險公司經營運作以外,商業保險公司紛紛介入搶灘農險市場,保監會亦鼓勵保險公司積極創新,爭取獲得地方政府的財政政策支持。

對於社保改革,強調實現基礎養老金全國統籌,不過對備受關注的機關事業單位和企業職工待遇差距問題,《決定》中並沒有使用“並軌”表示,取而代之是“整 合”。提出要整合城鄉居民基本養老保險制度、基本醫療保險制度。不過首都經貿大學保險系教授庹國柱對大智慧通訊社表示,要實現全國統籌,仍然存在很大的挑 戰,短期之內可能較難推進。

對於健全重特大疾病醫療保險和救助制度。無獨有偶,保監會於11月14日發布《人身保險業第一套重大疾病經驗發生率表》。保監會表示,這是我國人身保險業 第一套重疾表,填補了我國重疾表的空白,對於夯實行業發展基礎,促進產品創新,推動行業轉型升級具有深遠影響。從2013年12月31日起,保監會將以該 重疾表作為准備金評估用表,用於重大疾病保險產品的法定准備金評估工作。

大智慧通訊社記者根據資料梳理,目前我國社會保障體系主要組成部分為五個方面:

(1)城鎮居民基本社會保障體系:包括城鎮居民養老、社會醫療保障體系,主要面對城鎮在職和退休職工,資金來源主要是在職期間個人和企業繳納的社保。

(2)社保基金:是通過財政撥款和股權劃轉的方式建立的社保應急基金,主要用於未來社會保障出現資金缺口的不時之需,社保基金主要由社保基金理事會打理,2012 年底社保基金余額已經達到1.1 萬億。

(3)新農合和新農保:新農村合作醫療體系和新農村養老保障體系是近兩年來發展起來的專門面向農村居民的社會保障體系。資金來源於國家和地方補貼、農村居民部分繳納。其特點是低保障、廣覆蓋。

(4)企業年金:是企業自發成立的補充養老計劃,資金來源主要是個人和企業繳費,企業年金的主管機構是財政部。管理機構主要是保險公司、證券公司、基金公司和信托公司。

(5)商業保險:是市場化保障體系,主要由個人自發繳費,截至2013 年三季度,我國保險業資產總額為8.05 萬億。

《決定》顯示,制定實施免稅、延期征稅等優惠政策,加快發展企業年金、職業年金、商業保險,構建多層次社會保障體系。該部署被多位保險專家解讀為養老保險和健康保險等將迎來一波稅收優惠。

from aastocks.com