Determinants of Deposit-Insurance Adoption and Design

This paper identifies factors that influence decisions about a country's financial safety net, using a comprehensive data set covering 180 countries during the 1960-2003 period. Our analysis focuses on how private interest-group pressures, outside influences, and political-institutional factors...

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Main Authors:	Demirguc-Kunt, Asli, Kane, Edward J., Laeven, Luc
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280
Online Access:	http://hdl.handle.net/10986/5636

id	okr-10986-5636
recordtype	oai_dc
spelling	okr-10986-56362021-04-23T14:02:23Z Determinants of Deposit-Insurance Adoption and Design Demirguc-Kunt, Asli Kane, Edward J. Laeven, Luc Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 This paper identifies factors that influence decisions about a country's financial safety net, using a comprehensive data set covering 180 countries during the 1960-2003 period. Our analysis focuses on how private interest-group pressures, outside influences, and political-institutional factors affect deposit-insurance adoption and design. Controlling for macroeconomic shocks, quality of bank regulations, and institutional development, we find that both private and public interests, as well as outside pressure to emulate developed-country regulatory schemes, can explain the timing of adoption decisions and the rigor of loss-control arrangements. Controlling for other factors, political systems that facilitate intersectoral power sharing dispose a country toward design features that accommodate risk-shifting by banks. 2012-03-30T07:33:47Z 2012-03-30T07:33:47Z 2008 Journal Article Journal of Financial Intermediation 10429573 http://hdl.handle.net/10986/5636 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280
spellingShingle	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Demirguc-Kunt, Asli Kane, Edward J. Laeven, Luc Determinants of Deposit-Insurance Adoption and Design
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper identifies factors that influence decisions about a country's financial safety net, using a comprehensive data set covering 180 countries during the 1960-2003 period. Our analysis focuses on how private interest-group pressures, outside influences, and political-institutional factors affect deposit-insurance adoption and design. Controlling for macroeconomic shocks, quality of bank regulations, and institutional development, we find that both private and public interests, as well as outside pressure to emulate developed-country regulatory schemes, can explain the timing of adoption decisions and the rigor of loss-control arrangements. Controlling for other factors, political systems that facilitate intersectoral power sharing dispose a country toward design features that accommodate risk-shifting by banks.
format	Journal Article
author	Demirguc-Kunt, Asli Kane, Edward J. Laeven, Luc
author_facet	Demirguc-Kunt, Asli Kane, Edward J. Laeven, Luc
author_sort	Demirguc-Kunt, Asli
title	Determinants of Deposit-Insurance Adoption and Design
title_short	Determinants of Deposit-Insurance Adoption and Design
title_full	Determinants of Deposit-Insurance Adoption and Design
title_fullStr	Determinants of Deposit-Insurance Adoption and Design
title_full_unstemmed	Determinants of Deposit-Insurance Adoption and Design
title_sort	determinants of deposit-insurance adoption and design
publishDate	2012
url	http://hdl.handle.net/10986/5636
_version_	1764395768040390656

Determinants of Deposit-Insurance Adoption and Design

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