IMF Working Papers

Deposit Insurance, Remittances, and Dollarization: Survey-Based Evidence from a Top Remittance-Receiving Country

By David A. Grigorian, Maxym Kryshko

June 8, 2017

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David A. Grigorian, and Maxym Kryshko. Deposit Insurance, Remittances, and Dollarization: Survey-Based Evidence from a Top Remittance-Receiving Country, (USA: International Monetary Fund, 2017) accessed September 20, 2024

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Summary

The paper uses a unique survey of remittance-receiving individuals from Tajikistan to study the impact of policy awareness on consumer behavior. The results show that knowledge of deposit insurance encourages the use of formal channels for transmitting remittances and reduces dollarization. Given the size and importance of remittances in Tajikistan, improving financial literacy and better publicizing details of the social safety net may encourage a more frequent use of formal channels for transferring remittances and reduce reliance on foreign exchange for transaction purposes. This is likely to improve bank profitability, enhance financial stability, and improve access to finance.

Subject: Balance of payments, Banking, Currencies, Deposit insurance, Dollarization, Financial crises, Foreign exchange, Monetary policy, Money, Remittances

Keywords: Cash dollarization, Currencies, Deposit, Deposit insurance, DI awareness, DI protection, DI scheme, Dollarization, Dollarization proceeds, Global, Remittance, Remittance market, Remittance recipient, Remittance sender, Remittances, Sound deposit insurance system, Tajikistan, Transferring remittance, WP

Publication Details

  • Pages:

    22

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/132

  • Stock No:

    WPIEA2017132

  • ISBN:

    9781484300718

  • ISSN:

    1018-5941