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“The central bank released the China Financial Stability Report 2013 on 7 June, saying that a consensus has been reached on the establishment of a deposit insurance system and that the system may be launched and implemented at a suitable time. Sources say China will set up an insurance fund and the maximum coverage for each bank account will initially be set at Rmb500,000.  With the absence of a deposit insurance system, the state has actually taken on the responsibility to guarantee deposits in banks, which can easily lead to slack risk management and excessive speculation of commercial banks in seeking profits, the central bank report said.”

http://economists-pick-research.hktdc.com/business-news/article/Business-Alert-China/China-s-central-bank-ready-to-unveil-deposit-insurance/bacn/en/1/1X000000/1X09TNDQ.htm