Pricing of Deposit Insurance
The author aims to provide guidelines for the pricing of deposit insurance in different countries. He presents several methodologies that can be used to set benchmarks for the pricing level of deposit insurance in a country, and quantifies how spec...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2002/07/1971354/pricing-deposit-insurance http://hdl.handle.net/10986/19262 |
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okr-10986-192622021-04-23T14:03:42Z Pricing of Deposit Insurance Laeven, Luc DEPOSIT INSURANCE PRICING STRATEGY PRICE ADJUSTMENT COST ESTIMATES RISK DIVERSIFICATION RISK INSURANCE RISK MANAGEMENT DIFFERENTIAL EQUATIONS INSTITUTIONAL CAPACITY CAPACITY CONSTRAINTS BANKING SYSTEMS ACCOUNTING ANNUITIES ARBITRAGE ASSET PRICES AUDITING AUDITS BANK ASSETS BANK DEPOSITS BANK EXAMINATIONS BANK FAILURE BANK FAILURES BANK LIABILITIES BANK RISK BANKING CRISES BANKS CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CDS CREDIT RATINGS CREDIT RISK DEBT DEFAULT RISK DEPOSIT INSURANCE DEPOSIT INSURANCE COVERAGE DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE PRICING DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DIVIDEND YIELD ECONOMICS FACE VALUE FINANCIAL CRISIS FINANCIAL LEVERAGE GUIDELINES INSOLVENT BANKS INSTITUTIONAL ENVIRONMENT INSURANCE INSURANCE SYSTEM INSURED DEPOSITS INTEREST RATES LEGAL SYSTEMS LIQUIDITY MARKET DISCIPLINE MARKET VALUE MARKETABLE SECURITIES MONETARY POLICY MORAL HAZARD PRESENT VALUE PRICING MODELS PROBABILITY OF DEFAULT RATING AGENCIES REGULATORY FORBEARANCE RESERVES RETURN ON ASSETS RISK RISK MEASUREMENT RISK PREMIUM RISK PREMIUMS SHAREHOLDERS SMALL BANKS SUBORDINATED DEBT VOLATILITY The author aims to provide guidelines for the pricing of deposit insurance in different countries. He presents several methodologies that can be used to set benchmarks for the pricing level of deposit insurance in a country, and quantifies how specific design features affect the cost of deposit insurance. The author makes several contributions to our understanding of what drives the price of deposit insurance. For example, he shows how risk diversification and risk differentiation within a deposit insurance system can reduce the price of deposit insurance. The author also finds that deposit insurance is under-priced in many countries around the world, notably in several developing countries. More important, his estimates suggest that many countries cannot afford deposit insurance. Deposit insurance is unlikely to be a viable option in a country with weak banks and institutions. The author does not recommend a funded deposit insurance scheme, but rather he argues that for countries that have adopted or are adopting deposit insurance and have decided to pre-fund it, pricing it as accurately as possible is important. 2014-08-05T21:10:17Z 2014-08-05T21:10:17Z 2002-07 http://documents.worldbank.org/curated/en/2002/07/1971354/pricing-deposit-insurance http://hdl.handle.net/10986/19262 English en_US Policy Research Working Paper;No. 2871 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
DEPOSIT INSURANCE PRICING STRATEGY PRICE ADJUSTMENT COST ESTIMATES RISK DIVERSIFICATION RISK INSURANCE RISK MANAGEMENT DIFFERENTIAL EQUATIONS INSTITUTIONAL CAPACITY CAPACITY CONSTRAINTS BANKING SYSTEMS ACCOUNTING ANNUITIES ARBITRAGE ASSET PRICES AUDITING AUDITS BANK ASSETS BANK DEPOSITS BANK EXAMINATIONS BANK FAILURE BANK FAILURES BANK LIABILITIES BANK RISK BANKING CRISES BANKS CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CDS CREDIT RATINGS CREDIT RISK DEBT DEFAULT RISK DEPOSIT INSURANCE DEPOSIT INSURANCE COVERAGE DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE PRICING DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DIVIDEND YIELD ECONOMICS FACE VALUE FINANCIAL CRISIS FINANCIAL LEVERAGE GUIDELINES INSOLVENT BANKS INSTITUTIONAL ENVIRONMENT INSURANCE INSURANCE SYSTEM INSURED DEPOSITS INTEREST RATES LEGAL SYSTEMS LIQUIDITY MARKET DISCIPLINE MARKET VALUE MARKETABLE SECURITIES MONETARY POLICY MORAL HAZARD PRESENT VALUE PRICING MODELS PROBABILITY OF DEFAULT RATING AGENCIES REGULATORY FORBEARANCE RESERVES RETURN ON ASSETS RISK RISK MEASUREMENT RISK PREMIUM RISK PREMIUMS SHAREHOLDERS SMALL BANKS SUBORDINATED DEBT VOLATILITY |
| spellingShingle |
DEPOSIT INSURANCE PRICING STRATEGY PRICE ADJUSTMENT COST ESTIMATES RISK DIVERSIFICATION RISK INSURANCE RISK MANAGEMENT DIFFERENTIAL EQUATIONS INSTITUTIONAL CAPACITY CAPACITY CONSTRAINTS BANKING SYSTEMS ACCOUNTING ANNUITIES ARBITRAGE ASSET PRICES AUDITING AUDITS BANK ASSETS BANK DEPOSITS BANK EXAMINATIONS BANK FAILURE BANK FAILURES BANK LIABILITIES BANK RISK BANKING CRISES BANKS CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITALIZATION CDS CREDIT RATINGS CREDIT RISK DEBT DEFAULT RISK DEPOSIT INSURANCE DEPOSIT INSURANCE COVERAGE DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE PRICING DEPOSIT INSURANCE SCHEMES DEPOSITORS DEPOSITS DIVIDEND YIELD ECONOMICS FACE VALUE FINANCIAL CRISIS FINANCIAL LEVERAGE GUIDELINES INSOLVENT BANKS INSTITUTIONAL ENVIRONMENT INSURANCE INSURANCE SYSTEM INSURED DEPOSITS INTEREST RATES LEGAL SYSTEMS LIQUIDITY MARKET DISCIPLINE MARKET VALUE MARKETABLE SECURITIES MONETARY POLICY MORAL HAZARD PRESENT VALUE PRICING MODELS PROBABILITY OF DEFAULT RATING AGENCIES REGULATORY FORBEARANCE RESERVES RETURN ON ASSETS RISK RISK MEASUREMENT RISK PREMIUM RISK PREMIUMS SHAREHOLDERS SMALL BANKS SUBORDINATED DEBT VOLATILITY Laeven, Luc Pricing of Deposit Insurance |
| relation |
Policy Research Working Paper;No. 2871 |
| description |
The author aims to provide guidelines
for the pricing of deposit insurance in different countries.
He presents several methodologies that can be used to set
benchmarks for the pricing level of deposit insurance in a
country, and quantifies how specific design features affect
the cost of deposit insurance. The author makes several
contributions to our understanding of what drives the price
of deposit insurance. For example, he shows how risk
diversification and risk differentiation within a deposit
insurance system can reduce the price of deposit insurance.
The author also finds that deposit insurance is under-priced
in many countries around the world, notably in several
developing countries. More important, his estimates suggest
that many countries cannot afford deposit insurance. Deposit
insurance is unlikely to be a viable option in a country
with weak banks and institutions. The author does not
recommend a funded deposit insurance scheme, but rather he
argues that for countries that have adopted or are adopting
deposit insurance and have decided to pre-fund it, pricing
it as accurately as possible is important. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Laeven, Luc |
| author_facet |
Laeven, Luc |
| author_sort |
Laeven, Luc |
| title |
Pricing of Deposit Insurance |
| title_short |
Pricing of Deposit Insurance |
| title_full |
Pricing of Deposit Insurance |
| title_fullStr |
Pricing of Deposit Insurance |
| title_full_unstemmed |
Pricing of Deposit Insurance |
| title_sort |
pricing of deposit insurance |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2002/07/1971354/pricing-deposit-insurance http://hdl.handle.net/10986/19262 |
| _version_ |
1764439617279361024 |