CRI听力：China's Central Bank Drafts Plan for Deposit Insurance

China's central bank says it will set up a deposit insurance plan to guarantee savings and protect depositors from bankrupt banks.

The People's Bank of China, the country's central bank, signed an accord with the U.S. Federal Deposit Insurance Corporation on Thursday to cooperate on financial services and deposit insurance.

Central bank governor, Zhou Xiaochuan, says there is increasing need to establish the deposit insurance system in China, and the time is now ripe.

"Without a sound deposit insurance mechanism, we will inevitably be less daring in building the finance market and innovating financial organizations and structures."

He says the plan will apply to China's domestic banks and does not include overseas banks that operate in China.
The country's rural as well as small and medium banks are expected to benefit the most from such a deposit insurance mechanism.

Relevant preparations and legislation are said to be underway.