Deposit Insurance Design and Implementation : Policy Lessons from Research and Practice

This paper illustrates the trends in deposit insurance adoption. It discusses the cross-country differences in design, and synthesizes the policy messages from cross-country empirical work as well as individual country experiences. The paper develops practical lessons from this work and distills the...

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Bibliographic Details
Main Authors: Demirgüç-Kunt, Asli, Kane, Edward J., Laeven, Luc
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2006/07/6934849/deposit-insurance-design-implementation-policy-lessons-research-practice
http://hdl.handle.net/10986/8376
Description
Summary:This paper illustrates the trends in deposit insurance adoption. It discusses the cross-country differences in design, and synthesizes the policy messages from cross-country empirical work as well as individual country experiences. The paper develops practical lessons from this work and distills the evidence into a set of principles of good design. Cross-country empirical research and individual-country experience confirm that, for at least the time being, officials in many countries would do well to delay the installation of a deposit insurance system.