China will introduce a deposit insurance system to protect depositors and promote fair competition among large and small banks, said the central bank.

The nation started soliciting public opinion on Sunday on the establishment of the system, which will be established in six months or a year, according to the People's Bank of China.

The central bank will cap insurance coverage at 500,000 yuan ($81,000) for each client's deposits at each bank. Such coverage will give full protection to 99.6 percent of the depositors in China, said Huang Xiaolong, deputy director-general of the bank's financial stability bureau.