China central banker says deposit insurance premiums to be low, big impact on banks unlikely

      

China's recently launched deposit insurance scheme is unlikely to have a major impact on banks and premiums for the scheme will be much lower than in other countries, deputy central bank governor Pan Gongsheng said on Friday. 

PHOTO: ZAOBAO

3 Apr12:09 PM

[BEIJING] China's recently launched deposit insurance scheme is unlikely to have a major impact on banks and premiums for the scheme will be much lower than in other countries, deputy central bank governor Pan Gongsheng said on Friday.

Mr Pan also told a media conference in Beijing that the scheme would not affect the ability of small banks to attract deposits.

Bankers and investors have been waiting for more detail on how premiums for the deposit insurance scheme would be handled. Some analysts believe the new policy could benefit smaller banks at the expense of larger ones, depending on how the government structures the premiums banks must pay into the deposit insurance programme.

REUTERS