"China's Emerging Financial Markets is necessary reading for those who seek to understand the strategic direction of this key industry, as well as those who wonder what role China will play in the current global economic crisis."--BOOK JACKET

Deposit insurance is widely offered in a number of countries as part of a financial system safety net to promote stability. An unintended consequence of deposit insurance is the reduction in the incentive of depositors to monitor banks which lead to excessive risk-taking. We examine the relation...