and the stabilityof financial order. In the future, theCDICwill, in viewof theoverall economicand
financial situation, as well as the financial affordability and profit situation of insured institution,
deliberate adjustments to the deposit insurance premium at appropriate times. Moreover, in
conjunction with the related supervisory policies of the competent authority, the CDIC will
strengthen controls of insurance risk and reduce claim losses to accelerate accumulation of the
deposit insurance payout special reserves and promptly achieve the 2% target ratio. This will
enhance the CDIC’s ability to settle claims and strengthen depositor confidence in the deposit
insurancemechanism.
(2) Strengthening Off-site Monitoring Mechanisms and the Functions of the Risk-based
PremiumRatingSystem toControl InsuranceRisk
In order to better control insurance risk, the CDICwill continue to strengthen and use off-site
monitoringmechanisms and the Risk-based Premium Rating System to track changes in the
financial and operational risks of insured institutions.When signs of abnormalities appear, the
CDICwill also take necessary measures and provide guidance as appropriate to help insured
institutions reduceoperational risk.
(3) Strengthening Information Exchange with Financial Supervisory Agencies and Taking
NecessaryMeasures inConjunctionwith theCompetentAuthority
The CDIC will continue to strengthen exchanges and contacts with the relevant competent
authorities related to supervision andmanagement information to provide timely access to
relevant operational information of insured institutions and control insurance risk. Moreover, in
conjunction with the related supervision andmanagement policies of the competent authority,
theCDICwill continue tobe entrusted tomonitor affairs related to financial products and risk. If
an insured institution faces abusiness crisis or other incident that could affect the financial order,
the CDICwill closely cooperate with the competent authority and carry out timely supervisory
measures asneeded tomaintain financial stability.
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ReviewandOutlook
