Deposit Insurance: A Survey of Actual and Best Practices

Author/Editor:

G. G. Garcia

Publication Date:

April 1, 1999

Electronic Access:

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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.

Series:

Working Paper No. 1999/054

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

English

Publication Date:

April 1, 1999

ISBN/ISSN:

9781451847499/1018-5941

Stock No:

WPIEA0541999

Pages:

49

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