Interesting timing...

...for China's announcement of a deposit protection scam...er..."scheme".  Yes, the conditions ostensibly protect despositors from bank liquidation, but the exemption of foreign bank branches from the condition is telling.  The effects here would shift Chinese deposits from smaller banks and foreign branches to larger Chinese banks.  They also offer additional protection against runs on a bank in times of financial crisis.

Now why would the PBOC be concerned with that?

From the article:

The mainland had 49.9 trillion yuan of personal deposits and 53.7 trillion yuan of corporate time and demand deposits in October, according to the PBOC.

"To establish and regulate a deposit insurance scheme so that depositors are protected and financial risks can be reduced and financial stability maintained, the PBOC has drafted the rules for consultation," the official statement said.

Opinions can be submitted until December 30.

The establishment of a deposit insurance scheme is seen as a precursor to further financial reforms, including the scrapping of remaining controls on interest rates and increasing the role of market forces in the financial sector's operation so that lenders are allowed to fail if they are not well-run or if they take on too much risk.