The Application and Institutional Value of Deposit Insurance in Banking Reorganization

Deposit insurance,which makes depositors payment claim as the insured subject matter,has obligation to pay depositors in case bank is bankrupt or insolvent.Obviously,there is a natural relation between deposit insurance and bank bankruptcy system.But in tradition,most governments pay close attention to deposit insurance payment in bank liquidation,rarely attach importance to the possible functions of deposit insurance in bank reorganization.This article makes an analysis on application of deposit insurance in bank reorganization,and then elaborates the legal basis for deposit insurance participating in bank reorganization.Finally it analyzes the legal value of deposit insurance in bank reorganization.