Deposit insurance
From Wikipedia, the free encyclopedia
Explicit deposit insurance is a measure introduced by policy makers in many countries to protect deposits, in full or in part, in the event of a "run" on a bank or banks. The failure of a bank has the potential to trigger a much broader spectrum of harmful events. Deposit insurance systems are one component of a financial system safety net that contributes to the promotion of financial stability. The purpose of deposit insurance varies from one country to another but in most cases they are designed to protect less financially sophisticated depositors and to contribute to financial stability in an environment where banks are allowed to lend, or use otherwise, most of the money that they receive as deposits instead of safe-keeping the full amounts (see fractional-reserve banking). Deposit insurance institutions are for the most part government run or established, and may or may not be a part of a country's central bank, while some are private entities with government backing or completely private entities.
Many national deposit insurers are members of the International Association of Deposit Insurers (IADI), an international organization established to contribute to the stability of financial systems by promoting international cooperation and to encourage wide international contact among deposit insurers and other interested parties, in particular, IADI.
The United States was the first country to establish an official deposit insurance scheme, during a Great Depression banking crisis in 1934. According to IADI, as of June 2006, there are currently 118 countries with a deposit insurance system in operation, pending, planned or under serious study (i.e. 95 in operation, 11 pending, 12 planned or under serious study). There are a number of countries with more than one deposit insurance system in operation (e.g. Austria, Canada, Germany, Italy and the United States). On the other hand, one deposit insurance system can cover more than one country (e.g. the Marshall Islands, Micronesia, and Puerto Rico are insured by the US Federal Deposit Insurance Corporation; and Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea and Gabon will be covered also by a single system).
Contents |
[edit] Deposit insurance organizations and programmes
- Federal Deposit Insurance Corporation (FDIC) (USA)
- National Credit Union Administration (NCUA) (USA)
- American Share Insurance (ASI) (USA, Private)
- Canada Deposit Insurance Corporation (CDIC) (Canada)
- Financial Services Compensation Scheme (United Kingdom)
- Deposit Insurance Agency (DIA) (Russia)
- Instituto para la Protección al Ahorro Bancario (IPAB) (Mexico)
- Philippine Deposit Insurance Corporation (PDIC) (Philippines)
- Bulgarian Deposit Insurance Fund (BDIF) (Bulgaria)
- Korea Deposit Insurance Corporation (KDIC) (Korea)
- Fonds de Garantie des Depôts (FDG) (France)
- Malaysia Deposit Insurance Corporation (MDIC) (Malaysia)
[edit] See also
[edit] Research and guidance papers on deposit insurance
- Research and Guidance Committee(2006), "General Guidance to Promote Effective Interrelationships among Financial Safety Net Participants", IADI, January 2006
- Research and Guidance Committee(2005), "General Guidance for the Resolution of Bank Failures", IADI, December 2005
- Research and Guidance Committee(2005), "General Guidance for Developing Differential Premium Sysyems", IADI, February 2005
- Asli Demirguc-Kunt, Baybars Karacaovali, Luc Laeven (2005), "Deposit Insurance Around the World: A Comprehensive Database", World Bank Policy Research Working Paper 3628, June 2005
- Working Group on Deposit Insurance (2001), "Guidance for Developing Effective Deposit Insurance Systems", Financial Stability Forum, September 2001
- Working Group on Deposit Insurance (2001), "Volume II: Guidance for Developing Effective Deposit Insurance Systems", Financial Stability Forum, September 2001
[edit] External links
International
Africa
- Deposit Protection Fund Board(Kenya)
- Nigeria Deposit Insurance Corporation (NDIC)
- Deposit Protection Board (DPB)(Zimbabwe)
America
- Canada Deposit Insurance Corporation (CDIC)
- Deposit Insurance Corporation of Ontario (DICO)
- Federal Deposit Insurance Corporation (FDIC)
- Instituto para la Protección al Ahorro Bancario (IPAB)(Mexico)
- Fundo Garantidor de Créditos (FGC)(Brazil)
- Fondo de Seguro de Depósitos(Peru)
- Instituto de Garantía de Depósitos(IGD)(El Salvador)
- Jamaica Deposit Insurance Corporation (JDIC)
- Autorité des Marchés Financiers(Québec)
- Seguro de Depósitos Sociedad Anónima(SEDESA)(Argentina)
- Agencia de Garantía de Depósitos (AGD)(Ecuador)
Asia
- Korea Deposit Insurance Corporation (KDIC)
- Deposit Insurance Corporation of Japan (DICJ)
- Malaysia Deposit Insurance Corporation (MDIC)
- Philippine Deposit Insurance Corporation (PDIC)
- Deposit Insurance of Vietnam
- Hong Kong Deposit Protection Board
- Singapore Deposit Insurance Corporation (SDIC)
- Central Deposit Insurance Corporation (CDIC, Taiwan)
Europe
- EFDI(Europe)
- Financial Services Compensation Scheme (United Kingdom)
- Beschermingsfonds / Fonds de Protection / Protectionfund (Belgium)
- Insättningsgarantinämnden - The Deposit Guarantee Board(Sweden)
- Bulgarian Deposit Insurance Fund (BDIF)
- Deposit Insurance Agency (DIA)(Russian Federation)
- Albanian Deposit Insurance Agency
- Deposit Insurance Fund(Czech Republic)
- Deposit Guarantee Fund (Finland)
- Fonds de Garantie des Dépôts (FGD)(France)
- National Deposit Insurance Fund (NDIF)(Hungary)
- Fondo Interbancario di Tutela dei Depositi (FITD) (Italy)
- Savings Deposit Insurance Fund(Turkey)
Others
Criticisms
