Deposit Insurance

Explicit deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that is meant to promote financial stability, but can in fact do the opposite.

Read more about Deposit InsuranceWhy It Exists, How It Works, Overview By Country, Economic Impact, Criticisms of State-Sponsored Deposit Insurance, Deposit Insurance Organizations and Programmes

Other articles related to "deposit insurance, deposits, insurance, deposit":

Bank Regulation In The United States - Deposit Account Regulation - Deposit Insurance
... (after Czechoslovakia) to officially enact deposit insurance to protect depositors from losses by insolvent banks ... Glass–Steagall Act established the Federal Deposit Insurance Corporation (FDIC) to insure deposits at commercial banks ... a separate fund for credit unions, the National Credit Union Share Insurance Fund ...
Banking In Uganda - Deposit Insurance
... The Deposit Insurance Scheme was established in 1994 and became operational in 1997 ... It is funded by premiums charged to every licensed deposit-taking financial institution in the country ... The Depositor Insurance Law was enacted by Parliament and states that all depositors must be paid within 90 days of a bank failure and the failing institution must be sold by the auctioning ...
Deposit Insurance Organizations and Programmes
... These are the Crown or State run deposit insurance corporations Afghan Deposit Insurance Corporation (ADIC) (Afghanistan) Federal Deposit Insurance Corporation (FDIC) (USA ...
Diamond–Dybvig Model - Policy Implications
... enough resources to pay back some or all of its deposits ... Instead, they argue that a better way of preventing bank runs is deposit insurance backed by the government or central bank ... Such insurance pays depositors all or part of their losses in the case of a bank run ...
Liquidity Crisis - Role For Policy
... Diamond–Dybvig model, an example of a demand deposit contract that mitigates banks’ vulnerability to bank runs, while allowing them to be providers of liquidity ... contract which is identical to the pure demand deposit contract, except that it states that a depositor will not receive anything on a given date if he ... Policy Intervention Some experts suggest that the Central Bank should provide downside insurance in the event of a liquidity crisis ...

Famous quotes containing the words insurance and/or deposit:

    Women hock their jewels and their husbands’ insurance policies to acquire an unaccustomed shade in hair or crêpe de chine. Why then is it that when anyone commits anything novel in the arts he should be always greeted by this same peevish howl of pain and surprise? One is led to suspect that the interest people show in these much talked of commodities, painting, music, and writing, cannot be very deep or very genuine when they so wince under an unexpected impact.
    John Dos Passos (1896–1970)

    A real life, a life that leaves a deposit in the shape of something alive.... It’s difficult to say what makes a life a real life.... You could also say it depends on a person being identical with himself.
    Max Frisch (1911–1991)