Abstract:

Starting from the status quo and defects of China's reconstruction of financial safety network, this paper inquires into some inherent demands for the effective financial safety net in terms of our country's financial opening up to the world, and concretely explores the principles and steps to build our financial safety net on the basis of summing up international experiences. The author argues that it may effectively prevent the occurring of financial crisis to build a limited financial safety net on the principles of limited protection, completeness, transparence, economy and efficiency, balance of governance and coordination.

Key words: financial opening, financial safety net, deposit insurance, lender of last resort, prudential regulation, supervision