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Depositinsurance around the globe : where does it work?

Author

Listed:
  • Demirguc-Kunt, Asl'
  • Kane, Edward J.
Abstract
Explicit deposit insurance has been spreading rapidly in recent years, even to countries not advanced in 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. The authors document the extent of cross-country differences in deposit insurance design and review empirical evidence on how 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 addresing weaknesses in their informational and supervisory environments.

Suggested Citation

  • Demirguc-Kunt, Asl' & Kane, Edward J., 2001. "Depositinsurance around the globe : where does it work?," Policy Research Working Paper Series 2679, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2679
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial Intermediation; Payment Systems&Infrastructure; Banks&Banking Reform; Financial Crisis Management&Restructuring; Insurance&Risk Mitigation; Banks&Banking Reform; Financial Intermediation; Insurance&Risk Mitigation; Financial Crisis Management&Restructuring; Insurance Law;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • F3 - International Economics - - International Finance

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