The central bank pointed out that deposit insurance premium and deposit reserve are two completely different concepts, and they are essentially different. Deposit insurance premium is the cost of the bank, and deposit reserve is the liability of the bank. Moreover, there is a world of difference in order of magnitude between the two. The deposit reserve is about 20 trillion yuan, while the deposit insurance premium is very low, with a difference of several thousand times.

Lu Zhengwei, chief economist of Industrial Bank, also publicly stated that the deposit insurance system theoretically means that banks will not go bankrupt and will not become history. Therefore, the most competitive bank in the future will be the institution that can achieve the best balance between profitability and security, because excessive pursuit of profit means taking too high risks, which may lead to the loss of cautious depositors, and more depositors have a strong risk preference, thus pursuing higher returns, which will increase the cost of debt.