Insurance system to be based on bankruptcy model

China's deposit insurance system, which has not yet been established but has been discussed for years, will be based on the model the central bank used when solving the bankruptcy of a Shenzhen-based securities company in 2004, Shanghai Securities News reported on Thursday, quoting An Qilei, deputy head of the central bank's financial stability bureau.

The model means the official bailout for troubled lenders and their deposits will be based on the principle of "no interest rates, discounted principal, and limited purchases," An said.

China Daily - Agencies

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