Deposit Insurance Around the Globe: Where Does it Work?

No 8493, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Explicit deposit insurance has been spreading rapidly in recent years, even to countries with low levels of financial and institutional development. Economic theory indicates that deposit-insurance design features interact--for good or ill--with country-specific elements of the financial and governmental contracting environment. This paper documents the extent of cross-country differences in deposit-insurance design and reviews empirical evidence on how particular design features affect private market discipline, banking stability, financial development, and the effectiveness of crisis resolution. This evidence challenges the wisdom of encouraging countries to adopt explicit deposit insurance without first stopping to assess and remedy weaknesses in their informational and supervisory environments.

JEL-codes: F3 G2 (search for similar items in EconPapers)
Date: 2001-09
New Economics Papers: this item is included in nep-cba, nep-ias and nep-pke
Note: CF
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Published as Asli Demirguc-Kunt & Edward J. Kane, 2002. "Deposit Insurance around the Globe: Where Does It Work?," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 175-195, Spring.

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Journal Article: Deposit Insurance Around the Globe: Where Does It Work? (2002)
Working Paper: Depositinsurance around the globe: where does it work? (2001)
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