Deposit Insurance: A Survey of Actual and Best Practices

April 1, 1999

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G. G. Garcia Deposit Insurance: A Survey of Actual and Best Practices, (USA: International Monetary Fund, 1999) accessed December 30, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper surveys the characteristics of explicit systems of deposit insurance in 68 countries. It compares these actual practices with a set of best practices that has been adopted by IMF staff for their advice to member countries. These best practices seek to establish a system of deposit insurance that provides incentives for all parties—whether they are directly or indirectly affected by the guarantee—to keep the financial system sound. The paper discerns some convergence toward best practices in recent years, but notes several areas where improvements in the incentive structure are still necessary.

Subject: Bank deposits, Banking, Commercial banks, Deposit insurance, Financial crises, Financial institutions, Financial sector policy and analysis, Financial services, Lender of last resort, Moral hazard

Keywords: A number of country, Adverse selection, Africa, Asia and Pacific, Bank, Bank deposits, Banks fail, Commercial banks, Country, Coverage ratio, Deposit insurance, Depositor, DIS, Dis contract, DIS staff, Europe, Financial backing, Forty-five Dis, Government, Government funding, Lender of last resort, Lender of last resort, Middle East, Moral hazard, Operated Dis, Run Dis, Western Hemisphere, WP

Publication Details

Pages:

49
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/054
Stock No:

WPIEA0541999
ISBN:

9781451847499
ISSN:

1018-5941

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