With the full removal of blanket guarantee of deposits, it is expected that depositors themselves will make a rigorous selection of financial institutions, but amid the increasingly diverse and complex range of financial products, market discipline will not work fully based merely on the selections made by depositors alone. It is necessary for all parties concerned to make market discipline function effectively.
This change results in significant savings in costs for a large proportion of banks’ customers, an important point that should be brought to the attention of the public, most of whom were previously unaware that these charges were being made. The reform has already proved itself, and has started a positive trend in fees.