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

_IMF Working Papers, June 8, 2017_

## Source details

**Canonical URL:** [Deposit Insurance, Remittances, and Dollarization: Survey-Based Evidence from a Top Remittance-Receiving Country](https://www.imf.org/en/publications/wp/issues/2017/06/08/deposit-insurance-remittances-and-dollarization-survey-based-evidence-from-a-top-remittance-44918)

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## Bibliographic details
- Authors: David A. Grigorian, Maxym Kryshko
- Published: June 8, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484300718.001

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### Study scope and data
- Authors: David A. Grigorian, Maxym Kryshko
- Date: June 8, 2017
- Country focus: Tajikistan
- Data: unique survey of remittance-receiving individuals from Tajikistan
- Publication: IMF Working Papers, Working Paper No. 2017/132
- Pages: 22
- Volume: 2017
- Issue: 132
- DOI: https://doi.org/10.5089/9781484300718.001
- Stock No: WPIEA2017132
- ISBN: 9781484300718
- ISSN: 1018-5941

### Key findings
- Knowledge of deposit insurance:
  - Encourages the use of formal channels for transmitting remittances.
  - Reduces dollarization among remittance recipients.
- Implications of these findings:
  - Given the size and importance of remittances in Tajikistan, increased policy awareness can materially affect behavior around remittance transmission and currency usage.
- Expected institutional outcomes:
  - Increased use of formal channels is likely to improve bank profitability.
  - Enhanced financial stability may follow from reduced dollarization and greater formalization.
  - Improved access to finance can result from greater engagement with the formal financial sector.

### Policy recommendations and implications
- Improve financial literacy among remittance-receiving households to increase awareness of deposit insurance and related social safety net details.
- Better publicize details of the social safety net, including deposit insurance provisions, to:
  - Encourage more frequent use of formal remittance channels.
  - Reduce reliance on foreign exchange for transaction purposes.
- Anticipated policy benefits:
  - Greater formalization of remittance flows.
  - Lower cash dollarization.
  - Positive spillovers to banking sector profitability, financial stability, and access to finance.

### Subject areas and keywords
- Subject: Balance of payments, Banking, Currencies, Deposit insurance, Dollarization, Financial crises, Foreign exchange, Monetary policy, Money, Remittances
- Keywords (as provided): 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

*Source: IMF Working Paper — "Deposit Insurance, Remittances, and Dollarization: Survey-Based Evidence from a Top Remittance-Receiving Country", David A. Grigorian and Maxym Kryshko, June 8, 2017.*

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## Content in this bundle

- **Section II, lack of awareness of DI may be behind some of these outcomes.**
  - [Section II, lack of awareness of DI may be behind some of these outcomes. (Markdown version)](/-/media/files/publications/wp/2017/wp17132.pdf.md){rel="alternate" type="text/markdown"}
  - [Section II, lack of awareness of DI may be behind some of these outcomes. (PDF)](/-/media/files/publications/wp/2017/wp17132.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2017/06/08/deposit-insurance-remittances-and-dollarization-survey-based-evidence-from-a-top-remittance-44918_