PBC arranges for the application of deposit insurance logo
In order to fully implement the decisions and arrangements made by the Central Committee of the Communist Party of China (CPC) and the State Council, further improve the deposit insurance system, protect the legitimate rights and interests of depositors and advance the sound development of the banking sector, the People’s Bank of China (PBC) recently issued a notice of authorizing insured financial institutions to use the deposit insurance logo as of November 28, 2020.
The deposit insurance system is a fundamental institutional arrangement of the financial industry commonly implemented in many countries. Over 140 countries and regions worldwide have adopted the system, which plays a critical role in protecting the rights and interests of depositors, preventing and defusing financial risks and safeguarding financial stability.
The CPC Central Committee and the State Council attach great importance to the building of the deposit insurance system, which was officially proposed at the third plenary session of the 18th CPC Central Committee. In 2015, the State Council issued the Regulations on Deposit Insurance, which came into effect on May 1, 2015. The implementation of the system in the past five years or so has been smooth, depositors’ interests have been well protected, and the banking system has witnessed sound and steady advancement. As for now, a total of 4,025 financial institutions are insured by the deposit insurance. The CPC Central Committee’s proposals for the formulation of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035, reviewed and adopted at the fifth plenary session of the 19th CPC Central Committee, made further arrangements for improving the deposit insurance system.
The introduction of deposit insurance logo is an integral part of implementing the system, as well as a common practice globally. Being straightforward, noticeable and credible, the logo helps depositors to recognize insured financial institutions and better understand that their rights and interests are protected by the national deposit insurance system.
According to relevant arrangements, before the nationwide application of the deposit insurance logo on November 28, 2020, a pilot launch will be rolled out on November 7, 2020 in 11 cities (counties), including Neiqiu County, Hebei Province; Linfen City, Shanxi Province; Tieling City, Liaoning Province; Yangzhou City, Jiangsu Province; Linyi City, Shandong Province; Luohe City, Henan Province; Xiaogan City, Hubei Province; Huarong County, Hunan Province; Leshan City, Sichuan Province; Yuanmou County, Yunnan Province; and Weinan City, Shaanxi Province.
The deposit insurance logo is exclusively designed by the PBC. Financial institutions that participate in the deposit insurance shall obtain the electronic documents and manual for the production and use of the logo from the PBC or its branches as well as sub-branches in time, produce and use the logo in line with the requirements, and finish preparations before the nationwide application. Those financial institutions that plan to open their businesses after November 28, 2020 and participate in the deposit insurance, shall go through the insurance procedure as required before opening, obtain the electronic documents and the manual for the production and use of the logo, and start using it since the opening day.
To regulate the usage of the logo, the PBC formulated the Measures for the Use of Deposit Insurance Logo, with explicit specifications on the size, materials, scope of use and prohibited circumstances of the deposit insurance logo. Financial institutions that participate in the deposit insurance shall display the logo at a prominent position at the entrance of all domestic business locations, so that depositors entering the institution can conveniently identify that it is insured.
The PBC will regularly release the list of insured financial institutions for public enquiry on its official website.
