the
Agricultural Finance Act
, to strengthen control over insurance risk by specifying the
timing and methods of inspecting insured institutions and adding principles for the
resolutionof troubled financial institutions.
According to the amended regulations, the CDIC successively studied and formulated
five regulations, including the
“Operating Procedures regarding the Provision of Financial
Assistance by the Central Deposit Insurance Corporation to Encourage Acquisitions or
Assumptions,”
“RegulationsGoverning theEstablishment andBusinessOperations of Bridge
Bank,” “Operating Procedures regarding the Payout toDepositors by theCDIC,”
“Operating
Procedures of the CDIC for the Provision of Loans, Deposits or other Financial Assistance
to Insured Institutions under Conservatorship or Whose Powers of Board of Directors and
Supervisors are Exercised by the Competent Authority,”
and
“Regulations Governing the
Advance Payments to Depositors by the CDIC.”
These regulations were implemented
following approval and promulgation by the competent authority, providing more
comprehensivemechanisms for the resolutionof failed financial institutions.
(2) BackgroundandMeasures for the Implementationof theBlanketGuaranteePolicy
A. Background
The international financial situation underwent amajor change in 2008. To avoid systemic
risk, many countries around theworld successively expanded their deposits coveragewith
32
Central Deposit Insurance Corporation 30Years inRetrospect
