## Does Deposit Insurance Increase Banking System Stability?

_IMF Working Papers, January 1, 2000_

## Source details

**Canonical URL:** [Does Deposit Insurance Increase Banking System Stability?](https://www.imf.org/en/publications/wp/issues/2016/12/30/does-deposit-insurance-increase-banking-system-stability-3382)

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## Bibliographic details
- Authors: Asli Demirgüç-Kunt, Enrica Detragiache
- Published: January 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451841893.001

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### Major finding
- Analysis of panel data for 61 countries during 1980–97 concludes that explicit deposit insurance tends to be detrimental to bank stability.

### Heterogeneity of effects
- The adverse impact of deposit insurance on bank stability is stronger:
  - where bank interest rates are deregulated;
  - where the institutional environment is weak;
  - when the coverage offered to depositors is extensive;
  - when the scheme is funded;
  - when it is run by the government rather than by the private sector.

### Data and scope
- Sample: panel data for 61 countries.
- Period covered: 1980–97.

### Research context and framing
- Publication type: IMF Working Papers.
- Subject and keywords include: Bank deposits, Bank soundness, Banking, Banking crises, Deposit insurance, Financial crises, Financial sector policy and analysis, Financial services, Moral hazard; Africa; deposit insurance design; insurance scheme; insurance system; design feature; design variable; insurance dummy; insurance design; insurance variable; WP; E44; G21; G28; Global.

### Publication identifiers (as presented on the source page)
- Pages: 29
- Volume: 2000
- Issue: 003
- Series: Working Paper No. 2000/003
- DOI: https://doi.org/10.5089/9781451841893.001
- Stock No: WPIEA0032000
- ISBN: 9781451841893
- ISSN: 1018-5941

*Does Deposit Insurance Increase Banking System Stability? — By Asli Demirgüç-Kunt and Enrica Detragiache, January 1, 2000 (IMF Working Papers).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/does-deposit-insurance-increase-banking-system-stability-3382_