Deposit Insurance around the World

Deposit Insurance around the World

In the past two decades, in a series of banking crises around the world, banks have become systematically insolvent. These crises have occurred in developed and developing economies alike. To make such financial system breakdowns less likely and to limit their costs if they occur, policymakers feel the need for financial safety nets. These include such policies as implicit or explicit deposit insurance, a lender of last resort function of the central bank, bank insolvency resolution procedures, and bank regulation and supervision. Of these policies, explicit deposit insurance has been gaining popularity in recent years. Since the 1980s the number of countries with explicit deposit insurance schemes almost tripled, with most OECD countries and an increasing number of developing economies adopting some form of explicit depositor protection. In 1994 deposit insurance became the standard for the newly created single banking market of the European Union. Establishing an explicit deposit insurance scheme became part of the generally accepted best practice advice given to developing economies.

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Bibliographic Details
Main Authors: Sobaci, Tolga, Demirgüç-Kunt, Asli
Format: Journal Article biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2001-09
Subjects:ADMINISTRATIVE EXPENSES, ASSETS, BANK FAILURE, BANK INSOLVENCY, BANK INSOLVENCY RESOLUTION, BANK REGULATION, BANK STABILITY, BANKING CRISES, BANKING LAW, BANKING MARKET, BANKING OUTCOMES, BANKING SYSTEM, BANKING SYSTEM STABILITY, BLANKET GUARANTEE, CENTRAL BANK, CENTRAL BANK LAW, COINSURANCE, COMMERCIAL BANKS, COVERAGE LIMITS, COVERAGE RATIOS, DEBT, DEMAND DEPOSITS, DEPOSIT, DEPOSIT INSURANCE, DEPOSIT INSURANCE DESIGN, DEPOSIT INSURANCE DESIGNS, DEPOSIT INSURANCE FEATURES, DEPOSIT INSURANCE INCREASE, DEPOSIT INSURANCE SYSTEM, DEPOSIT PROTECTION, DEPOSIT PROTECTION ARRANGEMENTS, DEPOSITOR, DEPOSITORS, DESIGN OF DEPOSIT INSURANCE, DEVELOPING COUNTRIES, DUMMY VARIABLES, EXCHANGE RATE, EXPLICIT DEPOSIT, EXPLICIT DEPOSIT INSURANCE, EXPLICIT DEPOSIT INSURANCE SCHEME, EXPLICIT DEPOSIT INSURANCE SCHEMES, EXPLICIT DEPOSIT INSURANCE SYSTEM, EXPLICIT DEPOSIT INSURANCE SYSTEMS, EXPLICIT DEPOSITOR PROTECTION, EXPLICIT INSURANCE, EXPLICIT INSURANCE SCHEMES, EXPLICIT INSURANCE SYSTEMS, EXTENT OF COVERAGE, FINANCIAL DEVELOPMENT, FINANCIAL SAFETY NET, FINANCIAL SAFETY NETS, FINANCIAL SYSTEM, FIXED PREMIUMS, FOREIGN CURRENCIES, GUARANTEE SCHEME FOR DEPOSITS, IMPACT OF DEPOSIT INSURANCE, IMPLICIT DEPOSIT INSURANCE, INFORMATION ON DEPOSIT INSURANCE, INSOLVENT, INSURANCE FUND, INSURED DEPOSITS, INTERNATIONAL BANK, LAST RESORT FUNCTION, LEGISLATION, LENDER, LENDER OF LAST RESORT, MARKET DISCIPLINE, MONETARY FUND, NON-PERFORMING LOANS, NONPERFORMING LOANS, PUBLIC FUNDS, SAFETY-NET DESIGN, SAVINGS, SAVINGS BANKS, SAVINGS DEPOSITS, SUBORDINATED DEBT, TECHNICAL ASSISTANCE,
Online Access:http://documents.worldbank.org/curated/en/2001/09/17737158/deposit-insurance-around-world
https://hdl.handle.net/10986/17437
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Summary:In the past two decades, in a series of banking crises around the world, banks have become systematically insolvent. These crises have occurred in developed and developing economies alike. To make such financial system breakdowns less likely and to limit their costs if they occur, policymakers feel the need for financial safety nets. These include such policies as implicit or explicit deposit insurance, a lender of last resort function of the central bank, bank insolvency resolution procedures, and bank regulation and supervision. Of these policies, explicit deposit insurance has been gaining popularity in recent years. Since the 1980s the number of countries with explicit deposit insurance schemes almost tripled, with most OECD countries and an increasing number of developing economies adopting some form of explicit depositor protection. In 1994 deposit insurance became the standard for the newly created single banking market of the European Union. Establishing an explicit deposit insurance scheme became part of the generally accepted best practice advice given to developing economies.

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