China will put in place an insurance system for its over 100 trillion yuan bank deposits starting from May 1st this year.By setting an insured upper limit of half a million yuan per account, the system is said to cover the deposits of more than 99 percent of the savers.This is widely regarded as a stepping stone for China's interest rate liberalization, a key element for the country's financial reform.So why is it a proper time for the country to officially introduce such a system which has been under deliberation since the early 1990s?How will the existing players on the market be affected?And are we going to see risks accumulating in China's financial sector thereafter?