Does deposit insurance increase banking system stability ? An empirical investigation
AbstractBased on evidence of 61 countries in 1980-97, the authors find that explicit deposit insurance tends to be detrimental to bank stability, the more so where bank interest rates are deregulated and the institutional environment is weak. The adverse impact of deposit insurance on bank stability tends to be stronger the more extensive is the coverage offered to depositors, and where the scheme is funded and run by the government rather than the private sector.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2247.
Date of creation: 30 Nov 1999
Date of revision:
Financial Intermediation; Banks&Banking Reform; Insurance&Risk Mitigation; Financial Crisis Management&Restructuring; Insurance Law; Insurance&Risk Mitigation; Financial Crisis Management&Restructuring; Financial Intermediation; Insurance Law; Banks&Banking Reform;
Other versions of this item:
- Demirguc-Kunt, Asli & Detragiache, Enrica, 2002. "Does deposit insurance increase banking system stability? An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 49(7), pages 1373-1406, October.
- Asli Demirguc-Kunt & Enrica Detragiache, 2000. "Does Deposit Insurance Increase Banking System Stability? An Empirical Investigation," Econometric Society World Congress 2000 Contributed Papers 1751, Econometric Society.
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