Thinking of a deposit insurance system- delay it!
By Paul
A World Bank working paper surveying deposit insurance schemes;
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 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.
Related;
What Deposit Insurance Can and Cannot Do
Protecting Bank Deposits
Deposit Insurance Around the Globe: Where Does it Work? ," (with Asli Demirguc-Kunt) Journal of Economic Perspectives
Financial Development and Economic Growth: Views and Agenda." Journal of Economic Literature, June 1997
Does Deposit Insurance Increase Banking System Stability?
Deposit Insurance - A Survey of Actual and Best Practices
Deposit Insurance - Obtaining the Benefits and Avoiding the Pitfalls
Deposit Insurance -Actual and Good Practices